Rapid industrial progress resulting from a series of four-year economic development plans that began in 1953 has given Taiwan an economic prosperity and social stability unparalleled in China's history. Industrial production is now 10 times that of 1952. National income has increased correspondingly. Agricultural output has more than doubled - a remarkable feat in view of the virtually unchanged acreage under cultivation.
This progress has not come easily. Intelligent government guidance and all-out national endeavor have been required. Because of increased sophistication and the expansion of scope, Taiwan's economy now requires even greater effort and more thoughtful planning to continue rapid growth. Because of population increase, jobs must be found for large numbers of people. Their qualifications must be higher. Training and placement must be in line with need.
With these points in mind, the Council for International Economic Cooperation and Development under the Executive Yuan (Cabinet) established a Manpower Resources Committee in January of 1964. The minister of economic affairs is the convenor. Other members are vice ministers and the directors or commissioners of concerned departments of the Taiwan Provincial Government. The committee is served by a professional secretariat.
So far the employment picture has been favorable, as can be seen in the following indices:
1960=100
Year Population Employment Per Capita Income
1952 72.91 24.70 34.65
1956 84.23 49.25 57.70
1960 96.80 89.15 92.00
1964 109.93 105.73 135.84
1968 122.43 144.20 192.89
1969 128.37 157.40 208.06
The need for effective employment guidance is increasing. This was among five major topics discussed by the 10th Central Committee of the Kuomintang (Nationalist Party) at its Second Plenary Session March 29 through April 2 of this year. The ruling party adopted plans to promote employment, accelerate economic development and raise national income. Goals include:
-Creation of employment opportunities as required by population growth.
-Emphasis of labor-intensive industries without losing sight of the industrial sector's progress toward modernization and greater sophistication.
-Implementation of long-range educational projects to meet manpower and socio-economic requirements. Old occupational preferences are to be questioned, vocational training programs expanded and school-factory cooperation stepped up.
-Improvement of labor conditions and work environments.
-Establishment of an employment guidance system to coordinate labor demand and supply.
The party stipulated that organs should be established on both central and provincial levels. The Taiwan. Provincial Government has been operating two employment guidance centers. Data are provided by the Labor Force Survey and Research Institute that was set up under the Provincial Department of Social Affairs in October of 1963. Activities will be stepped up.
The Executive Yuan acted promptly in response to the Kuomintang's call. Within two weeks of the Central Committee session, the Cabinet decided to set up a National Employment Assistance Commission on the central level. The backbone of the new commission will be the Executive Yuan's Vocational Assistance Commission for Retired Servicemen, which has resettled some 180,000 ex-servicemen. VACRS operates 93 enterprises and other organizations, including 17 in agriculture, 3 in forestry, 4 in fishery and animal husbandry, 15 in industry and mining, 1 in engineering, 13 in medicine, 4 in training, 27 in services and 9 homes for the aged.
Also to be incorporated in the new commission are the Executive Yuan's Youth Guidance Committee, the Ministry of Interior's Labor Affairs Department and branches of the Ministries of Education and Economic Affairs that have to do with vocational training and guidance. Activities of VACRS and other agencies will be taken over and expanded by National Vocational Guidance Commission bureaus in charge of (1) retired servicemen's guidance, (2) youth guidance, (3) vocational training, (4) labor administration and (5) production control.
Surveys conducted by the Labor Force Survey and Research Institute last year produced these average civilian employment figures:
A. Population: 13,883,000
B. Persons aged 15 and over: 7,838,000
C. Labor force: 4,517,000, including:
1. Employed: 4,434,000, subdivided into:
-Fully employed: 4,336,000
-Underemployed: 98,000
2. Unemployed: 83,000
Comparisons with figures for preceding years showed these trends:
-The number of persons aged 15 and over was 56.46 per cent of the total population last year, up from 53.72 per cent in 1965 and a gain of 2.74.
-In the total population, employed persons ac counted for 31.94 per cent last year, up from 29.33 per cent in 1965. The increase of 2.41 per cent did not keep up with growth of the working-age population. However, each employed person now has a reduced burden of non-working dependents. In 1965, every 2,933 persons had to support themselves and 7,067 others. Last year, every 3,194 workers had only 6,806 dependents.
-The proportion of employed persons in the working-age group rose from 29.33 per cent in 1965 to 56.57 per cent last year. In other words, every 100 persons aged 15 and over last year included two (1.97) more employed persons than in 1965.
-In the labor force, the percentage of employment rose from 96.62 in 1965 to 98.16 last year.
-Although the labor force grew 20 per cent from 3,760,000 in 1965 to 4,517,000 last year, the number of unemployed dropped 35 per cent from 127,000 to 83,000.
However, there were more unemployed and underemployed persons last year than ever before and the rise will continue this year as seen in the following table:
Unit: 1,000 persons
Year Fully Employed Under-employed Unemployed
1965 3,518 115 127
1966 3,557 90 117
1967 3,890 83 94
1968 4,108 51 72
1969 4,336 98 83
1970 4,585 112 100
There are several favorable trends in Taiwan's employment structure. Employment in primary industry - farming, forestry and fishery - accounted for 43 per cent of the employed population in 1966 but had dropped to 39 per cent last year. Those engaged in secondary industry - mining, manufacturing, construction and utilities-increased from 23 to 26 per cent in the same period. The service sector (tertiary industry), including commerce and transportation, grew from 33 to 35 per cent. Officials expect the agricultural sector to continue declining. Past figures and the 1978 projection are as follows:
Year Primary Industry Secondary Industry Tertiary Industry
1966 43% 23% 33%
1969 39 26 35
1978 33.5 31.5 35
Figures for 1966 and 1969 are broken down like this (percentages of the total are in parentheses):
Unit: 1,000 persons
1966 1969
Total Employed 3,647 4,434
(100%) (100%)
Primary Industry 1,586 1,728
(43.49%) (38.97%)
Secondary Industry 850 1,171
(23.31%) (26.41%)
-Mining 57 87
(1.56%) (1.96%)
-Manufacturing 629 834
(17.25%) (18.81%)
-Construction 134 215
(3.67%) (4.85%)
-Utilities 30 34
(0.82%) (0.77%)
Tertiary Industry 1,210 1,535
(33.18%) (34.62%)
-Commerce 437 628
(11.98%) (14.16%)
-Transportation 175 209
(4.80%) (4.71%)
-Services 556 679
(15.25%) (15.31%)
-Others 42 19
(1.15%) (0.43%)
Favorable changes also are taking place with regard to the nature of employment and extent of specialization. Percentages for all occupational sectors except agriculture have been rising. Targets for 1978 (compared with 1968) are as follows:
Occupations 1968 1978
Technical, skilled 4.6 % 5.5 %
Administrative 2.95 3.5
Agricultural 42.35 33.0
Semi-skilled & manual 21.5 26.5
Others 28.6 31.5
Details of Taiwan employment by occupation in 1966 and 1969 were as follows:
Unit: 1,000 persons
1966 1969
Total employed 3,647 4,434
(100 %) (100 %)
Professional, technical 188 197
(5.15%) (4.44%)
Executives and 138 142
managers (3.78%) (3.20%)
Clerks 267 280
(7.32%) (6.31%)
Sales 408 547
(11.19%) (12.34%)
Farmers, fishermen, 1,566 1,705
hunters, foresters (42.94%) (38.45%)
Miners, quarrymen 47 74
(1.29%) (1.67%)
Transportation, 125 140
communications (3.43%) (3.16%)
Craftsmen, production 680 1,098
laborers (18.65%) (24.76%)
Services, sports, 227 260
recreation (6.22%) (5.86%)
According to Taiwan Provincial Government manpower surveys, only about 39 per cent of 3,620,000 workers were receiving wages from others in 1964. The percentage rose to 49 in 1969 and the government hopes for 55 per cent by 1978. This is a breakdown for 1968 and 1969 and the 1978 goal:
1968 1969 1978
Employees 47% 49% At least 55%
Self-employed 30 27 20% or below
Unpaid family 23 23 Balance
Workers
The Republic of China is becoming an industrial society. Large families are breaking up into smaller ones. Dependence on income from outside the family circle is increasing. More jobs have to be created.
In the olden days, any number of persons living under a single roof depended on the family land. A man's dependence upon and moral obligations to his family lasted until death - and even thereafter, through worship of his spirit by his sons. In a sense, the family assumed the functions of a mutual benefit society with provisions for health and unemployment insurance as well as social security in one's old age. Family members were components of an economic unit. They shared the chores and the fruits of their joint labors. Even if the harvest was bad and not enough for the family, no one was in a hurry to seek outside employment.
In an industrial society, small families without land need wages. One cannot stay jobless for long. Jobs must be provided for those who have finished school and completed military service.
For free Chinese on the threshold between agricultural and industrial life, traditional family concepts are still strong. Unemployment insurance is not yet in effect. Those out of jobs may seek assistance from relatives and friends. This and the absence of a precise definition of the term "unemployment" make unemployment statistics unreliable.
The 1966 census and year-end population registration statistics for 1967 and 1968 put Taiwan's unemployment figure above 200,000. But manpower surveys estimated the unemployed population at only 117,000 in 1966 and 85,000 last year. The surveys also showed that the island's "potential labor force" included about 150,000 persons planning to find jobs, pot willing to work or temporarily incapacitated by illness or injury. These persons may be regarded as unemployed. If so, the unemployed population adds up to more than 200,000.
About a third of the unemployed are newcomers to the labor market. That they are unable to find work despite the availability of jobs is due either to their lack of required skills or unwillingness to accept terms proposed by potential employers.
The Taiwan Provincial Government's four manpower surveys in 1968 put the average of that year's potential but non-working labor force at 2,605,000. This included 1,839,000 (70.6 per cent) who were occupied with home work, 587,000 (22.5 per cent) who were attending school, 36,000 (1.4 per cent) who were not willing to work and 143,000 (5.5 per cent) who gave other reasons for not being employed.
A survey conducted in October of last year showed that fewer people were occupied at home, more were attending school and twice as many potential workers were in the not-willing-to-work category. A comparison is given below:
Unit: 1,000 persons
1968 October
Average 1969
Potential labor force 2,605 2,610
(100%) (100%)
-Home workers 1,839 1,720
(70.6%) (65.9%)
-Students 587 673
(22.5%) (25.8%)
-Not willing to work 36 73
(1.4%) (2.8%)
-Others 143 146
(5.5%) (5.6%)
Estimates of the manpower situation in the next four years include these points:
-The working age (15 or over) population will increase by an average of 300,000 annually. The standard international practice presumes that about 60 per cent of this age group will enter the labor market if this is the case for Taiwan, there will be 180,000 additional job-seekers each year. If the 95.45 per cent employment rate of the past is to be maintained, at least 171,000 positions must be created each year.
-Educational authorities anticipate that school dropouts and graduates failing to continue with schooling will increase from the 189,000 in 1969 to 279,000 in 1972 and total at least 957,000 in the four-year period. Most will start looking for jobs right after they leave schools.
-If Taiwan's economic growth continues at the present rate, at least 233,000 new workers will be needed each year. This will include about 52,000 technicians and production-line workers, but existing schools can provide only about 14,000. The rest, some 38,000, must be produced by vocational training programs other than those in schools.
-In the event of war, increased military needs would immediately call for some 20,000 additional skilled workers. Replacements would have to be found for about 25,000 factory workers who would be summoned by the military.
Taiwan's inexpensive labor has been a big attraction to investors from abroad. Whether this contributes much to the island's economy is now doubted by many experts. Investors are attracted by the relatively low wages but are allowed to produce for export only. This is to protect local industry and prevent excessive consumer spending. Investors make big profits and Taiwan gets only the amount of the low wages. If Taiwan capital established similar export industries, gains for the economy would be much larger.
These other problems face economic planners:
-Per capita income was NT$10,300 (US$257.50) last year, more than six times the NT$1,716 of 1952 at current prices. At 1964 prices, adjusted for gain or loss due to changed terms of trade, the value last year was not much more than double the 1952 figure. The present level is not high compared with conditions in industrially advanced countries. Outflow of talent is one result of the income level gap. Taiwan's living standard needs to be improved at a faster rate. This calls for accelerated agricultural modernization and industrial sophistication. Higher productivity, faster capital accumulation and creation of more job opportunities are requirements.
-Highly skilled persons are flowing out of the country at a time when the domestic scene is plagued by a shortage of such skills. Families who can afford it want their children to receive as much schooling as possible. A large number of college graduates go abroad for advanced studies each year and only a few ever return. On the other hand, poor families want their children to start working as quickly as possible. These early-starters can contribute only unskilled labor. Workers of middle and upper echelons are always insufficient. According to industrial and commercial surveys made in 1961 through 1966, the number of ordinary workers increased by 56.5 per cent in the five years but the percentage of increase in the skilled sector was only 6.9.
-Because of rapid industrial development since 1961, large numbers of surplus farm hands have been absorbed by new factories requiring semi-skilled or unskilled labor. During planting and harvest seasons, many workers go back to farms. To assure factories of a stable manpower source, agricultural modernization is urgent. Factory work must be made more attractive.
-Taiwan conditions preclude rapid agricultural and mining development. Additional job opportunities in these sectors will be few. Industrialization is bound to step up mechanization and pooling of labor on farms. This will further reduce rural job opportunities.
-Of Taiwan's industries, the lighter types have developed the fastest. Similar industries are now being promoted by the other developing countries. This can reduce exports, enforce production restraints and affect employment.
-To be more competitive, factories need to renovate production facilities and techniques. This means more skilled manpower. Schools have not kept up with the demand for vocational training. Engineers and natural science graduates are in short supply but students in these fields account for only 27 per cent of college enrollment. Students in humanities and social sciences have limited employment opportunities but make up 58 per cent of the college population.
-Female workers are increasing much faster than males. There is a shortage of skilled male workers. Increases in the 1961-1966 period were 58.2 per cent for women workers and only 19.9 per cent for men. In 1954 there were 49 female workers for every 100 males. The 1961 ratio was 56 to 100 and that of 1966 was 74 to 100.
The National Employment Assistance Commission is expected to improve the manpower situation materially within the next year. Organizationally, this new agency will have a commissioner appointed by the President of the Republic, from two to four vice commissioners, a secretary-general and three deputy secretaries-general. There will be five bureaus subdivided into 18 departments, as follows:
1. Retired Servicemen's Assistance Bureau with five departments to handle retired servicemen's resettlement, education, employment, health and recreation.
2. Youth Assistance Bureau with three departments for youth employment, youth life and assistance to the unemployed.
3. Labor Administration Bureau with three departments-conditions of work, collective bargaining and employment guidance-and one International Labor Affairs Office.
4. Retired Servicemen's Enterprises Administration Bureau with four departments for (1) agriculture, forestry, fishery and animal husbandry, (2) industry and mining, (3) engineering and (4) investment and joint operations.
5. Vocational Training Bureau with three departments for training regulations, training courses and administration of specialized manpower.
Housekeeping departments will be those of personnel, accounting, statistics, research and development, secretarial, general affairs and supplies. Auxiliary agencies may be set up if necessary.
An island wide registration of persons with special skills is already under way. Work is being carried out in Taipei hsien (county) on an experimental basis. Registration will be completed by the end of July and card files set up by late August. A report will be made and the Taipei hsien experience used as a guideline for subsequent registrations throughout Taiwan. Those aged from 16 and 60 and belonging to one or more of 145 job-subdivision will be covered regardless of present employment status. There are four major categories-production, transportation, medical and others.
These are other new moves in the effort to assure an adequate supply of trained Taiwan manpower:
-The government will spend NT$600 million (US$15 million) for the improvement of industrial and science education programs at colleges and senior vocational schools. US$9 million will come from World Bank loans and the rest will be raised by national, provincial and Taipei municipal governments. The Taiwan Provincial Government will spend about half the amount -NT$292,755,000 (US$7,318,875) - on 15 TPG-operated industrial and agricultural vocational schools, including one at the junior college level. At least 180 industrial classes will be added in the next three years.
-The Ministry of Education has approved the establishment of 16 graduate institutes and 20 undergraduate departments in the 1970-1971 academic year. Science and technology courses are to be emphasized.
-The Provincial Department of Education is allocating NT$12 million (US$300,000) for pre-service and in-field teacher training in fiscal 1970-1971. More than 7,000 junior middle school teachers will ·be benefited. Half of them are newly recruited and will receive training before schools open in September.
-The first class of junior middle school students to be graduated since the nine-year free schooling program was started in 1968 will receive diplomas in June of 1971. The government is preparing to spend nearly NT$90 million (US$2.2 million) to give job training to at least 26,000 of the 235,440 graduates.
James Garfield, 20th president of the United States, said: "If the power to do hard work is not talent, it is the best possible substitute for it." The free Chinese are still working hard but know that in today's world the talented must be specially trained as well as diligent.