Taiwan’s jobless rate for October edged slightly higher to 4.3 percent from a month ago, mainly because of more factory closures.

The increase may seem small, but keep in mind that October is traditionally a high season for Taiwan’s exports, so that is not a good sign.

Now analysts are worried that this is only the beginning as the global economic downturn continues to weigh on Taiwan’s exports.

This year’s economic growth for Taiwan has been revised downward three times in the past six months to 4.5 percent, and officials estimate that the number of workers forced to take no-pay leave has exceeded 5,000. But trade unions said that the actual number is six times higher.

So if the economic situation continues to worsen, more firms may be forced to downsize. This means more people will be out of a job.

Officials estimate that this year’s jobless rate will hit 4.43 percent.

Unless there is a major turnaround in the global economy, this number is likely to go higher in the near-term.

Source: Channel News Asia