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Policies to replenish labor force, counter demographic changes

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Policies to increase the labor participation of people of all ages and to encourage young adults to marry and have children were discussed at the Executive Yuan population policy committee meeting convened today by Vice Premier Mao Chi-kuo.

The resolution of these issues would help the nation meet the challenge of a decreasing working-age population and potential labor shortage.

The National Development Council's (NDC) proposed draft amendment to The ROC Population Policy Guidelines was passed by the committee. The amendment chiefly responds to the challenges posed by late entry to the work force and early retirement as well as the departure of high-salaried employees from and entry of low-wage workers to the labor market, and it is designed to help augment labor participation and put progressive immigration policies in place.

To increase labor participation, education would be strengthened and linked with diversified employment, and friendly work environments would be fostered to proactively cultivate and employ middle-aged and elderly workers.

Regarding immigration, the amendment would enhance the recruitment of professionals in various fields, engender a friendly immigration environment, and provide linkage and support systems for overseas compatriots.

The Ministry of Labor (MOL) has formulated and submitted numerous measures to raise middle-aged and elderly workers' labor participation, including:

  • Making work hours more flexible and mulling the reduction of legally mandated maximum work hours to help employees balance work and family.
  • Providing short-term employees with simple and streamlined procedures for insurance to protect them from workplace risks.
  • Encouraging young and elderly people to start up businesses together.
  • Establishing an employment resource center for elderly people.

Mao directed the MOL to research in-depth the reasons workers are retiring early in order to address their situations and raise the labor participation of the middle-aged and elderly. The MOL must analyze different categories of workers—classifying by gender, age group and educational level—in order to devise concrete and effective countermeasures, Mao stated.

To give youths more diverse job opportunities, help students join the work force sooner, and resolve the problem of delayed entry to the job market, the Ministry of Education (MOE) has proposed three major strategies: stepping up career development, reducing the gap between the knowledge taught in schools and the knowledge needed by industries, and integrating the resources of different sectors.

Nevertheless, employment difficulties of youths of different ages and education levels should be studied and the resources and strengths of different ministries and agencies coordinated to formulate effective strategies that will impel youths to enter the work force, Mao instructed.

For example, the establishment of a cross-ministerial office to better connect industry and academia would help students get employed, as would an exchange platform between industry associations, technological and vocational education institutions, and regional industry-academia cooperation centers for the teaching and training of practical skills.

In order to foster a friendlier environment for bearing and raising children, the vice premier instructed relevant agencies such as the Ministry of Health and Welfare, MOE and MOL to help meet the practical needs of young parents when providing child-care subsidies and implementing education and health measures. Such policies include:

  • Allowances for raising children age two and under and subsidies for hiring nannies.
  • Tuition subsidies for five-year-olds attending kindergarten.
  • Allowances for parents taking leave from work to care for their babies.
  • Daycare resource centers run through public-private cooperation
  • Home-based daycare services.
  • Public and non-profit nurseries and kindergartens.
  • Daycare facilities or measures at enterprises.

Mao asked for evaluations of the cost-effectiveness of expanding these measures. Various agencies should seek the best policy mix affordable to reduce parents' financial burden, the vice premier said.

Mao instructed the NDC to expediently revise the Guidelines based on the opinions of committee members and submit the revisions to the Executive Yuan for approval so that they may be implemented by various ministries and agencies.

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