TAIPEI (Taiwan News) — The Ministry of Labor on Wednesday said more than 8,500 workers have been furloughed, with 90% affected by US tariffs.

The ministry reported that 398 companies implemented negotiated reductions in working hours, affecting 8,505 employees, per CNA. Compared with the Sept. 16 report of 333 companies and 7,334 workers, the number of companies rose by 65 and the number of workers by 1,171.

Huang Chi-ya (黃琦雅), director of the labor ministry’s Department of Standards and Equal Employment, said most reductions were in manufacturing, with 327 companies and 8,070 workers affected, about 95% of the total. Within manufacturing, the machinery and equipment manufacturing sector was dominant, which involved 140 companies and 3,559 workers.

Company reports indicated that US reciprocal tariffs were the main reason for the reduced hours. The measures affected 310 companies and 7,755 workers, around 90% of total furloughs.

Huang said 19 companies had the largest number of employees affected, totaling 2,980 workers. Regionally, Taichung had the most affected companies and workers, with 117 firms and 2,598 people, followed by Tainan with 55 companies and 1,328 workers. Taoyuan and New Taipei each had 53 companies, affecting 978 and 412 workers, respectively.

Since US tariffs took effect on April 1, the growth in reduced-hour workers has remained concentrated in manufacturing. Domestic-focused industries showed little change or slight decreases, and the current increase of 1,171 workers is much smaller than the previous rise of 2,471.