Jobless rate for June up slightly due to graduation season

A worker at the Taiwanese bicycle manufacturer Giant inspects a wheel on the factory's assembly line, in this July 16, 2002 photo, at the headquarters in the central Taiwan town of Tachia. (AP Photo/Wally Santana)

TAIPEI (CNA) — The jobless rate for June rose slightly because of an increase in first-time jobseekers as university students graduated, the Directorate General of Budget, Accounting and Statistics (DGBAS) said on July 22.

The unemployment rate for June rose 0.06 percentage points from a month earlier to 3.73 percent, according to DGBAS data.

The number of people out of work rose 8,000, or 1.79 percent, from a month earlier to 445,000, while the number of the employed was 11.48 million, up 0.04 percent from a month earlier.

The labor participation rate was 59.12 percent, the DGBAS said.

Pan Ning-hsin (潘寧馨), deputy director of the DGBAS census department, said the unemployment rate is pushed up during the June-August period because of the surge in new entrants to the job market.

In the last five years, the jobless rate for June has always been higher than May by a range of 0.06 to 0.09 percentage points, according to the DGBAS.

Pan, however, anticipated that the effects of the current graduation season on the jobless rate will slowly subside in September.

Based on the data, the jobless rate for June after seasonal adjustment was down 0.01 percentage points over the previous month at 3.74 percent, ending a consecutive three-month rise.

The labor market has also been affected by the slowdown in the local economy, the deputy director said, noting, however that the effects have been minimal.

Judging from the seasonally adjusted rate, it is obvious that the unemployment situation remained stable and there was no further deterioration, he explained.

According to the DGBAS, Taiwan’s average jobless rate for the first six months of 2019 was 3.68 percent, up by 0.02 percent from the same period of last year.

By Pan Tzu-yu and Ko Lin