The number of employees forced to take unpaid leave in Taiwan's industrial zones in February dropped to less than 3,000 from a peak of 227,000 last year,thanks to improved economic conditions at home and abroad, "Premier" Wu Den-yi said Tuesday.

Wu added that science-based parks created more than 14,000 jobs this year. Employees given unpaid leave in these high tech centers totalled fewer than 60.

Hit by the global financial meltdown,the local economy contracted 9.06 percent in the first quarter of 2009,marking the worst decline in Taiwan's history.

On the back of recovering global demand,however,the domestic economy emerged from recession in the fourth quarter of last year. The jobless rate fell to 5.67 percent in March after hitting a record high of 6.13 percent last August.

The premier made the comments at a ceremony held by the "National Youth Commission" in which the government honored banks that extended loans at preferential interest rates to young people seeking to set up their own businesses.

Wu said the preferential loans have served as a most effective way to improve the local employment market as new businesses set up by young people have provided new jobs.

He added that the government has also tried its best to stabilize the economy and shore up confidence during the bad times by providing insurance for all bank deposits and raising investment in public projects.

China Daily/CNA

(HK Edition 05/05/2010 page4)