Taiwan residential industry faces downturn and job cuts

A recent survey of Taiwan’s residential industry reveals a significant downturn following two years of selective credit controls by the central bank. The study, conducted by researchers from Kun Shan University and I-Shou University, indicates that 74.3% of surveyed businesses have seen a decline in business volume, new projects, or order quantities.

The contraction is impacting the entire supply chain. Approximately 54.8% of companies have reduced demand for outsourced labor and crews, while 52.2% have decreased purchases of raw materials and construction supplies.

Employment is also being affected through “hidden unemployment.” While official statistics may not reflect widespread layoffs, the survey found that 55.8% of companies have reduced their formal staff numbers. Notably, among the 371 companies that experienced a drop in orders of over 50%, 77.6% reported cutting their workforce by half. Many businesses are adopting a “defensive strategy” characterized by delaying projects, reducing recruitment, or not replacing departing employees.