Promoting work – a review of active labour market policies in Taiwan

Taiwan has experienced a structural change in the labour market since 1996 due to intensified globalization, the trend towards deindustrialization and the increasing outflow of foreign direct investment, particularly to China. The unemployment rate has increased more than 2% since 1996 and reached approximately 5% in 2002 and 2009. A series of policy measures have been adopted to address the unemployment problems. The economic development model of Taiwan had been characterized as ‘growth with equity’. The country enjoyed a low unemployment rate and dramatic economic growth in the 1970s and 1980s. However, the structural changes resulting from globalization and deindustrialization pose huge challenges to the labour market in Taiwan. This article evaluates the outcomes of the policy measures enacted since 2000 to address the problem of unemployment and poverty. Taiwan's work–welfare nexus and governing system will be compared with that of other East-Asian countries.