TAIPEI (Taiwan News) — Taiwan’s unemployment rate reached a record low for February, despite a slight uptick compared to the previous month.

The Directorate-General of Budget, Accounting and Statistics (DGBAS) reported Monday that the unemployment rate in February stood at 3.34%, an increase of 0.04 percentage points from January. The seasonally adjusted unemployment rate was 3.35%. Both figures represent the lowest February rates in 25 years, CNA reported.

Tan Wen-ling (譚文玲), deputy director of the DGBAS, said approximately 400,000 people were unemployed in February, up by 6,000 from the month before. She attributed the increase to seasonal job turnover, as some individuals left their positions in search of new opportunities or had their temporary contracts expire.

Tan emphasized that the labor market remains healthy and predicted that many of those who left jobs in February will return to the workforce in March. She said the unemployment rate is expected to decline further, barring any unexpected disruptions.

The labor force participation rate in February was reported at over 59%, the highest for the month in 36 years. Tan noted that participation increased across nearly all age and gender groups.

The data also showed approximately 118,000 workers were considered time-related underemployed, meaning they were employed but willing and available to work more hours. That figure rose by 9,000 from January.

Tan said the increase in underemployment may be linked to seasonal shifts in retail demand. During the Lunar New Year holiday, employers likely offered additional hours, followed by a drop in demand afterward, leading to a temporary reduction in working hours.