Taiwan’s Labour Minister Hung Sun-han has urged industries not to rely on migrant workers as a “silver bullet” to solve ongoing labour shortages.
In an interview with the Central News Agency (CNA) of Taiwan on 1 April 2025, Hung warned that such a strategy risks entrenching a low-wage business model, which could ultimately harm both workers and the broader economy.
Hoteliers and transportation companies have consistently lobbied the government for permission to hire migrant workers.
They argue that vacancies in positions such as housekeepers, wait staff, and intercity bus drivers are chronically unfilled despite repeated recruitment efforts.
However, Hung stressed that the root causes of these shortages must be examined in a more nuanced, sector-specific way.
“Labour shortages are complex and vary across sectors. We must assess them accordingly and not adopt blanket solutions,” Hung said in the CNA interview.
He added that any increase in migrant labour must be carefully managed to avoid harming the employment prospects of Taiwanese workers.
A key concern is the creation of an “anchoring effect,” where the availability of lower-paid migrant workers could discourage businesses from raising wages.
This, Hung noted, would be detrimental to long-term economic development and social equity in Taiwan.
He identified two demographic groups with untapped potential in addressing labour shortages: young part-time and freelance workers, and middle-aged and elderly workers.
Hung noted a growing trend among younger generations toward flexible employment.
“Members of younger generations prefer to have more control and flexibility over their schedules,” he said.
This preference, he explained, means that industries dependent on rigid, full-time work models may struggle to attract young talent.
While the Ministry of Labor (MOL) does not actively promote freelancing or part-time employment, Hung emphasised the need to improve labour protections for such workers.
“The goal is to help workers and businesses adapt to new employment patterns without compromising protections,” he said.
Hung also underscored the role that middle-aged and elderly workers could play, especially as Taiwan nears super-aged society status.
With more than 20 percent of the population expected to be aged 65 and over in the coming years, policies that promote older worker participation are gaining urgency.
Hung stated that the MOL is working to help businesses become more accommodating to older workers by defining job roles and providing the necessary resources for integration.
“Creating age-friendly work environments is essential. It’s not just about hiring—it’s about ensuring long-term success and stability in the workplace,” he said.
This strategy aligns with broader efforts by the Taiwanese government to address demographic and economic challenges through workforce inclusivity.
As Taiwan continues to grapple with shrinking birth rates and rising life expectancy, maximising local workforce participation is becoming a policy priority.
Hung’s remarks signal a clear push for a more holistic, sustainable approach to labour issues—one that considers social trends, demographic shifts, and the evolving nature of work.
According to the MOL, upcoming initiatives may include revised labour laws, training programmes, and subsidies to support the integration of diverse worker groups into the economy.
These measures, combined with more prudent use of migrant labour, aim to build a more resilient and equitable labour market in Taiwan.
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