It is estimated that Taiwan's workforce will suffer an annual loss of approximately 180,000 workers between 2016 and 2060 according to statistics from the National Development Council (NDC).
In addition to a massive loss of workers, the NDC also estimates that every 1.2 people in the labor force will have one elderly dependent, which combined with relatively low elderly labor participation and growing brain drain of young professionals, means Taiwan is facing an ever more critical demographic landscape, a report by the Central News Agency said.
The NDC indicated that if the labor force participation rate could be increased annually from 58 percent in 2013 to 60 percent in 2020, the labor force could feasibly maintain its current levels.
However, the NDC's latest statistics show that all workers aged 15 to 64 currently represent 74 percent of Taiwan's workforce, whereas those 65 and over represent only 12 percent of the workforce. It is estimated that by 2061, 51 percent of Taiwan's workforce will be between 15 and 64 years old and those 65 and over will make up 38-percent of the workforce.
The NDC statistics show that Taiwan's workforce is currently made up of 17.37 million people and indicate that Taiwan's "demographic dividend" is currently at its peak.
From 2016 onward, the loss of 180,000 workers annually shows that the "demographic dividend" is in decline, and the age structure of Taiwan's working population is showing more elderly workers than ever before, according to the NDC.
The report shows that members of Taiwan's workforce will be under more pressure to care for the elderly, as in 2014 every 6.2 workers had one elderly dependent, whereas in 2060, every 1.2 workers will have one elderly dependent.
Senior labor specialist at the NDC's Civil Service Development Institute, Hsieh Chia-i stated that the national population structure is clearly showing the presence of a declining birth rate, aging and a trend of a shrinking work-age population, according to the CNA report.
In addition, the current workforce is facing a prolonged education of the school-aged population, making early retirement a less feasible option for many middle-aged workers. Hsieh indicated that on top of the issues of a shrinking and aging workforce, Taiwan is suffering a brain drain with highly skilled laborers looking abroad for better employment opportunities.
The NDC's "Golden Years of National Development Vision", the section describing the goals for improving employment, state that labor force participation should be increased from 58 percent to 60 percent, and female labor participation should be increased from 50 percent to 53 percent. However, the issue of the overall shrinking of the labor pool is derived from the change in age and the shrinking of the population.
As part of the NDC's plan to expand the workforce participation rate, and promotion of youth and female employment, Hsieh suggests that the government should encourage strengthening education and diversify employment standards.
Hsieh even encouraged young people to opt out of getting a master's degree so they can enter the workforce as soon as possible, as Hsieh believes that education and employment can combined to shorten the learning gap.
NDC Deputy Council Minister Kao Shien-quey stated that in order to promote female employment, employers should allow more flexible work hours and provide some sort of compensation for child care.
The NDC emphasized in its report that the overseas Taiwanese diaspora should be attracted to return for employment by creating "smart industries" in an effort to curtail the brain drain.