Taiwan's female labor force participation rate has revealed cyclical movement in the short run since the 1960s. The cyclical variation in labor market seems related to recent industry structural shifts in Taiwan. We adopt Lilien's (1982) method to calculate the natural rate of unemployment, taking into account the shifts of demand for labor among different sectors. We then use Pancavel's (1986) method to run the regression of female labor force participation on the natural rate of unemployment. We find that the decision of female laborers is significantly sensitive to sectoral shifts, especially for the group of age 15-44.