Taipei, Taiwan. Photo: Wikimedia Commons
Taipei, Taiwan. Photo: Wikimedia Commons

With Taiwan’s population aging at a steady rate, the nation’s economy is set to suffer the blow of an imminent shortage of manpower and labor.

A report from the National Development Council in Taiwan showed that the nation’s working-age population peaked in 2015 and began to shrink in 2016. By 2027, the labor force is set to fall to less than 66.7% of the total population, Asia News reported.

The Directorate General of Budget, Accounting and Statistics of Taiwan added that almost two million women in Taiwan are not in the labor workforce for family reasons. In addition, the number of unemployed people aged between 15 and 64 (the prime working age group) reached 5.24 million in May, with most of them having valid reasons for not being employed.

In order to alleviate the situation, Taiwanese authorities have decided to bring in more workers from overseas. Indonesia and Taiwan recently signed a Memorandum of Understanding for the recruitment and hiring of increased numbers of migrant workers from Indonesia.

The agreement is set to promote lateral cooperation and the exchange of ideas between the two countries.

According to Taiwan’s Ministry of Labor, around 190,000 Indonesian migrant workers are already employed in the country, mostly as domestic workers and caregivers.