The US labour market showed signs of a steady slowdown in October, with job openings increasing moderately and layoffs declining, according to the latest Job Openings and Labor Turnover Survey (JOLTS) report released by the Bureau of Labor Statistics on Tuesday. Job openings, a key indicator of labour demand, rose by 372,000 to 7.744 million at the end of October. However, the September figures were revised downward to 7.372 million from the initially reported 7.443 million. Economists polled by Reuters had anticipated 7.475 million vacancies. Labour Market Dynamics While job openings increased, hires dropped by 269,000 to 5.313 million, and layoffs fell by 169,000 to 1.633 million. These figures suggest a gradual cooling of the labour market rather than a sharp contraction. Hurricanes and strikes also impacted October’s labour market data. Rebuilding efforts in storm-affected regions and the resolution of strikes at Boeing and another aerospace company are expected to contribute to a ...
Taiwan, a key player in the global semiconductor industry, will implement a significant electricity price increase starting in mid-October, affecting its industrial users. The Economics Ministry announced that power prices will rise by an average of 12.5%, placing additional financial pressure on major companies like Taiwan Semiconductor Manufacturing Co. (TSMC).
This hike in electricity rates follows a previous increase in April, which saw power bills for industrial users surge by 15% to 25%. TSMC experienced the steepest increases, raising concerns about its profit margins amidst rising operational costs. The latest decision is driven by an anticipated annual growth in power consumption of 2.8% through 2033, largely fueled by demand from the AI sector.
The state-owned utility, Taiwan Power Co. (Taipower), has faced substantial financial challenges over the past two years as it attempted to maintain lower prices despite escalating fuel costs. The utility reported a staggering NT$198.5 billion loss in 2023, marking its second consecutive year of financial shortfalls.
Taipower attributed these losses to soaring international fuel prices following Russia's invasion of Ukraine. While fuel costs have decreased recently, they remain elevated compared to pre-war levels. The utility has pointed out that Taiwan's adjustments to electricity tariffs are relatively slow compared to global standards.
Taiwan's economy, heavily reliant on imported coal and gas, is undergoing a transition as it seeks to diversify its energy sources. The island is investing in renewable energy projects, such as offshore wind, but these initiatives have faced delays and challenges. Additionally, Taiwan plans to shut down its final nuclear reactor by next May, further impacting its energy landscape.
As the power price hike takes effect, stakeholders in Taiwan's semiconductor industry will be closely monitoring its effects on operational costs and overall market competitiveness.
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