This paper examines the past and the present situation of guest workers in Taiwan. In the second half of the 1980s, the upgrading of Taiwan' s industry caused the demand of labor to increase. At the same time, the supply of primary labor was on the decrease. This was due to a declining birthrate and attitude change of laborers. To deal with this shortfall in primary laborers, the Taiwanese Government introduced the Guest Workers Policy in 1989.
The most important part of the policy was to limit and define the national origin and types of guest workers. The Taiwanese Government only permits guest workers from Thailand, the Philippines, Indonesia, Vietnam, and Malaysia. The types of industries in which guest workers are permitted include: manufacturing, service, maritime, and construction. Now, the guest workers in Taiwan number over 300,000.
Recently, Taiwanese enterprises are actively increasing foreign direct investment, especially in China. So the unemployed rate in Taiwan is increasing. Now, it is even difficult for Taiwanese to find a job. The future of the demand for guest workers in Taiwan will not increase.