In this paper empirical evidence is presented based on a recent nation
wide survey conducted in Taiwan concerning industrial responses to ris
ing labor costs and shortages. Four types of corporate strategies are
discussed, namely, the recruitment of part-time workers, the importati
on of foreign workers, the provision of training for employees, and th
e substitution of labor with automation. It is found that all four str
ategies are increasingly being practised, particularly the employment
of foreign workers as a short-term solution in the processes of indust
rial restructuring.