Taiwan's jobless rate hit 5 percent in December last year, the highest for more than five years, the island's statistical department said Thursday.

The jobless rate was the highest since October 2003. The figure put the overall jobless rate of the island in 2008 at 4.14 percent, also the highest since 2004.

About 549,000 people in Taiwan were out of work by December, 42,000 more than in November.

At least 120,000 of the unemployed population lost their jobs because of company closure and layoffs in the four months from August to December in reaction to the global economic downturn.

According to the statistical department, the island's jobless rate might further increase after the traditional Lunar New Year, as the festival season leaves fewer temporary job opportunities open.

(Xinhua News Agency January 23, 2009)