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Taiwan's job market booms with AI amid historic labor shortage

Allen Hsieh, Taipei; Willis Ke, DIGITIMES Asia 0

Credit: DIGITIMES

Following the Chinese New Year, Taiwan is experiencing a job-hopping wave that coincides with the largest labor shortage in history. Data from 104 Job Bank revealed a staggering 1.078 million job opportunities released by 56,000 companies, but the number of job seekers is only 595,000. Amid this labor scarcity, it is particularly noteworthy that the rise of AI will reshape the global labor market landscape, as some jobs will be replaced and new job opportunities will be created.

Vivi Wong, a senior director at 104 Job Bank, stated during a media briefing on March 5 that the hottest keyword in workplace learning right now is AI. She cited McKinsey's estimate that by 2030, automation could eliminate 800 million jobs globally, concurrently creating 900 million new job opportunities.

As generative AI becomes increasingly mature in various application fields, it will bring higher productivity and economic benefits. Traditional job skills will be redefined, and businesses and talent must pay more attention to the impact of AI.

According to internal data analysis by 104 Job Bank, observing recruitment trends from AI keywords, there were 240,000 AI-related job openings available each month in the fourth quarter of 2023, representing a 29% growth over the same period of 2019. The highest demand was for software design engineers, with 5,244 job opportunities in the fourth quarter of 2023. The AI-related positions with the largest growth are operations managers and system integration/ERP project managers, with an increase of 123%.

In terms of the average monthly salary for AI positions, 104 Job Bank pointed out that when job titles contain AI-related keywords, the average monthly salary can increase from NT$41,000 (US$1,299) to NT$57,000, with an AI bonus of about NT$16,000, representing an average increase of 38%. The information software system category, responsible for implementing AI technology into applications, registers an average monthly salary of up to NT$80,000. The industry with the largest increase in salary due to AI is the finance and accounting professional category, with an increase of 60%.

Wong attributed the demand for AI talent and subsequent salary increments to implementing generative AI applications like ChatGPT, enhancing work efficiency and reducing resource requirements. Consequently, while the salary increase for AI talent averages 38%, the reduction in manpower costs outweighs this increment.

Integrating AI into production processes, such as quality control, offers a competitive edge by optimizing resources. Service-oriented technology companies can leverage AI to deliver more personalized and comprehensive services, enhancing customer satisfaction and retention rates.

Wong anticipates sustained demand for AI talent across industries, projecting a transformative period of 3-5 years. As AI permeates various sectors, it heralds a new era of "coopetition," where industrial players collaborate and compete, driving the need for skilled AI professionals.