Labor shortage remains Taiwan's top industrial challenge for third year, says GCC report

Taiwan's industrial sector is grappling with a severe labor shortage, identified as the most significant challenge for the third year running, according to the 2026 White Paper released by the General Chamber of Commerce (GCC). The report, themed 'Turning Point – Taiwan's Key Layout in Global Economic Restructuring,' highlights the urgency of addressing this issue alongside industrial transformation, energy resilience, and industrial security.

The GCC's survey of 161 member industrial associations revealed that labor shortages (76.6%), industrial transformation (75.7%), and energy policy (63.1%) are the most pressing concerns. The shortage is described as a "systemic crisis" that could destabilize the nation if not managed effectively. External risks, including carbon pricing and geopolitical influences, also rank high, with decarbonization policies (54.1%) and international trade (46.8%) being key areas of focus.

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Labor shortage has accelerated the expansion of the gap and has evolved into a systemic crisis that can shake the foundation of the country.

To combat the labor deficit, the GCC urges the government to adopt a more open approach to foreign worker policies, moving from "narrow gate management" to "comprehensive docking." This includes removing quota restrictions and expanding eligibility beyond traditional manufacturing sectors. The chamber also suggests evaluating a reduction in the employment stabilization fee to ease labor costs for businesses. Specific measures for the construction industry, such as doubling foreign worker quotas to 30,000 through an outreach model, are also proposed.

Further recommendations include extending the work tenure for industrial foreign workers to 14 years, similar to domestic helpers, to retain experienced staff and stabilize the workforce. The GCC also advocates for diversifying labor sources by exploring new countries with demographic advantages, drawing inspiration from successful models in Japan and South Korea. The report emphasizes the need for a "labor-management-government-academia human rights communication mechanism" to discuss recruitment costs and implementation challenges, particularly concerning the government's planned "zero-fee policy" for foreign workers, which could significantly impact small and medium-sized enterprises.

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Should comprehensively review and relax foreign worker import policies, shifting from 'narrow gate management' to 'comprehensive docking' mode.