The unemployment rate rose from February, when it was 3.78 percent.

Census official Huang Jiann-Jong said the rise in the March jobless rate reflected seasonal factors. He forecast the rate would fall in April.

"There were no structural changes in the labor market, and we see demand in the market continuing to grow steadily," Huang said.

On a seasonally adjusted basis, Taiwan's unemployment rate in March was 3.94 percent, up from 3.91 percent in February, the Directorate-General of Budget, Accounting and Statistics said.

In March, 420,000 of Taiwan's 10.66 million labor force were unemployed, a rise of 18,000 from 402,000 in February, the directorate said in a statement.

Total employment rose 0.01 percent, or by 1,000 workers, to 10.24 million in March from the previous month, it added.

The number of first-time job seekers who failed to land a job increased by 4,000 from February. The number of people quitting their jobs rose by 5,000 from February, while those who lost seasonal jobs rose by 4,000, the directorate said.