During the past six months on construction sites throughout cities on Taiwan there has appeared a strange phenomenon: a big land site yet only a few people running about. Construction is surely lacking in workers.
However, workers are not only lacking in construction. A study by the Directorate General of Budget, Accounting & Statistics, Executive Yuan done in October of this year shows that there is a shortage of workers in the production of clothing, metal, fine machinery, and electric power as well as in the electronic industry. In spite of this lack, it is still not as serious as that of the construction industry.
The nation needs 2.6 million workers in production yet it lacks 7.8 percent; the construction industry needs an additional 470,000 workers.
While many other nations are experiencing high unemployment, why is it that we have a labor shortage?
Many concerned with our society have said that the Happy Lottery is to blame.
Actually, many workers would prefer to gamble in the Happy Lottery rather than go to work. The day before the drawing, people ask the gods for clues as to what the lucky number will be. On the day of the drawing, if the telephones are not completely in use then everyone sits in front of the television set and eagerly awaits the news. On the day after the drawing the winners treat others and celebrate while the losers, somewhat in despair, don't feel like going back to work.
If this happens twice a month, then one week of work gets wasted in all. It's no wonder why the bosses of some factories are so straightforward as to act as group leader and gather information on the latest news to avoid having their own workers running around at the time of the drawing.
However, if you take a look at the growth rate of both last year and this year, you'll discover something doubtful. If all of the labor went off to gamble in the Happy Lottery, then who was responsible for creating the 10 percent economic growth rate?
"The economic growth rate in the nation over the past two years has grown like crazy. It has surpassed the utilization of the various natural resources on hand," says Pei Chi Chang, Director, Manpower Planning Department Council for Economic Planning and Development of the Executive Yuan. Other resources such as raw materials and atomic energy and even capital can circulate the globe. "However, if there's a lack of manpower then a problem arises."
It's no wonder that for more than a year now, ads for job openings have spread to other pages of the newspaper. There's just not room enough for all of them. According to statistics, during the first half of this year on Taiwan, job openings reached a total of 267,000, yet only 75,000 people sought them. On the average, a person has three and a half selections when choosing a job.
This lack of manpower also occurred at other prosperous times in the nation before. On account of this, Wei-Chun Wan, Vice President of Pacific Construction Co., Ltd., incisively points out that, "Taiwan is a shallow platter economy; when things are going well it gets full."
The situation is the same with the other three "little dragons" of Asia. In October of this year Japan's Economic News reported that the major reason for the labor shortage of the "four little dragons" is their prosperity.
This year in the ROC on account of the surplus of foreign currency, the NT has appreciated 25 percent. Under such pressure and fear that the NT will appreciate even further, merchants and businessmen are taking orders as quickly as possible.
Because of the currency flow, the rise and fall in the stock market, which has given investors a good scare, and the fourteen key construction projects under way, the labor shortage is becoming more serious in the area of building and construction.
The Happy Lottery, the economic prosperity and even the surplus and fourteen key projects have created the temporary labor shortage.
Secondly, the education level of our nation is ever increasing. Each year there are 90,000 graduates from higher education institutions.
"Every year there are 300,000 new workers. Therefore, 'generals' will occupy one-third of the positions while on the other hand 'new recruits' will not be enough," says Pei Chi Chang.
If there are not enough workers, well then others will just have to work overtime! However, this is not the solution.
"If I ask them to work overtime, they'll quit!" says the boss of a textile factory. Besides this, the land set aside for industrial use, in view of economic prosperity, has skyrocketed in price. Be cause of this many have become wealthy and have not had to work.
Scarce things are expensive. With the labor shortage, the salaries of workers immediately increase.
"The present problem is not spending money for labor but finding laborers," says Wei-chun Wan, "There are many engineers that want to invite others to bid at a tender; however, when the construction companies get hold of the plans, they discover that they don't have enough workers. The number of engineering failures due to procrastination is far too big."
The situation with exports is even more serious. The labor shortage problem faced at this time has greatly influenced our nation's economy and therefore has brought in foreign labor. In fact, foreign labor has already entered the country. According to the Central Daily News, in mid-October of this year there was a group of nineteen young "tourists" from Thailand, who left their passports with a tourism bureau and mysteriously disappeared on the day they were to leave. According to police investigation, their luggage contained very few articles of clothing. It's obvious they were here to work.
Just how many foreign workers are there? Chang Ch'ing-hsi of the graduate school of economics at National Taiwan University estimates that there are about 70,000, most of whom are here legally. They enter on tourist visas, stay half a year, leave the country for a few days, and then come back.
"When workers become more valuable than machines, then bosses will have no choice but to invest in automation," says Pei Chi Chang, "It's only in this way that we can weed out workers of low-quality production and improve our nation's industrial structure."
"The quality of manpower on Taiwan is high. It should have been used in valuable production and service in the first place," says Andrew Tsuei, "Now it's a kind of waste."
Adds Pei Chi Chang: "From now on the economic development of our nation must not depend on exports," but we must do our best to expand the domestic market to help increase economic growth. There is a need for a greater number of workers who will in turn enjoy an increase in income.
"If, under the present labor shortage, the relation between labor and management can automatically improve, and do not oppose one another, then it will be more beneficial to our society."
In view of this, perhaps the labor shortage has come at just the right time.
[Picture Caption]
In the manpower market at Tachiaotou, a temporary worker sits and waits for work.
The current domestic labor shortage is most acute in the construction industry.
The production industry cannot compare with the multifariousness of the service industry. (photo by Vincent Chang)
In Hsimenting there are many people just hanging out.
The Happy Lottery has a great effect upon a worker's production. (photo by Vincent Chang)
Is it worth the effort to import foreign labor? (photo from Sinorama files)
Will the labor shortage bring the development of industry to a halt?
(Cartoon by Chu Te-yung)
The current domestic labor shortage is most acute in the construction industry.
In Hsimenting there are many people just hanging out.
The production industry cannot compare with the multifariousness of the service industry. （photo by Vincent Chang）
The Happy Lottery has a great effect upon a worker's production. （photo by Vincent Chang）
Will the labor shortage bring the development of industry to a halt?
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