Analysis: Income Up in Taiwan but Households Still Struggling
Government statistics show that average income in Taiwan hit a record high last year, but not everyone is feeling the benefits. Labor activist Roy Ngerng explains the difficult situation most households face in Taiwan, as even mid-range salaries only afford them the most basic necessities.
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00:00A decent rental may be hard to come by in Taiwan, but there is some good news. Income
00:05is rising. According to the country's statistics office, the average annual income was US$22,200
00:12in 2023. That includes wages, investments, rental income and is about US$150 more than
00:19in 2022. Income for Taiwanese workers under 30 increased by more than US$250. They earned
00:26on average US$17,000 last year. The government statistics agency says an improving economy
00:32and lower unemployment is behind the rise. But some observers say young people are still
00:38struggling to make ends meet.
00:41So the latest government statistics show that annual income is on the rise in Taiwan, but
00:46does this give the full picture for Taiwan households?
00:50An approach that would be more in line with the lived reality of individuals in Taiwan
00:56is to look at how much they actually need to earn for basic necessities and to ensure
01:01that the amounts that they are earning should meet that. And my own calculations are that
01:06the income needed for basic necessities in Taiwan would be about US$40,000 to US$50,000.
01:16So the monthly earnings of about US$46,000 that has just been released is only adequate
01:22for barely basic living needs. And this already includes investment returns and rental income.
01:31For those who do not have these, they will not be able to meet their basic daily necessities.
01:37So we know that the economy is growing and the income is up, but what pressures are households
01:41in Taiwan under when it comes to earning money and spending money?
01:45I think the key issue here in Taiwan is that the minimum wage in Taiwan is too low, far
01:51too low for a basic standard of living due to the Ministry of Labour's credit.
01:56The other big budget item in Taiwan is housing. And housing takes up a huge proportion of
02:02the wage of average workers. It takes up about 45% of the average worker and as much as 70%
02:09of those living in Taipei. So that takes up a huge chunk of the income needed that can
02:17be used to purchase other basic necessities. Taiwan's grocery prices as compared to its
02:23wages are actually very high as compared to other advanced countries. And this means that
02:28the average household has to fork up quite a huge amount of money for groceries. And
02:34the wholesale and retail trade sector in Taiwan actually earns huge profits as compared to
02:39other advanced countries.
02:41We know that the rising cost of living and house prices were big issues in the presidential
02:46election earlier this year. The president's now been in office for a few months. Is there
02:50any sign that he's doing anything to tackle this problem?
02:55I feel that there are some promising signs. Under the Minimum Wage Deliberation Committee
03:01they released a research report that has tried to push back on some of the rhetoric and propaganda
03:07that business groups have been pushing. For example, they have been saying that the minimum
03:12wage increase will result in higher unemployment and higher consumer prices. But the report
03:17has shown that there is no strong correlation between minimum wage increases and unemployment
03:23and consumer prices. The research report has also shown that the minimum wage can result
03:28in average prices increasing and benefiting other workers.