Japan July Jobless Rate Steady at 2.8%, Job Growth Continues

--July Jobless Rate Matches MNI Survey Median Forecast  

--Japan July Employment +590,000 Y/Y vs. June +610,000

     TOKYO (MNI) - Japan's Labor Force Survey from the Ministry of Internal

Affairs and Communications released Tuesday.

     * The seasonally adjusted average unemployment rate stood at 2.8% in July,

unchanged from June. Backed by rising job offers, the 2.8% unemployment rate,

which was also seen from February to April this year, remained at the lowest

level since June 1994, when it was also at 2.8%.

     * The number of employed rose 140,000 (+0.2%) month-on-month vs. a rise of

120,000 (+0.2%) in June, while the number of unemployed rose 10,000 (+0.5%)

after falling 160,000 (-7.8%) in June. The number of people who left for other

openings rose 4.9% on month and the number of people who lost their jobs rose

2.0%. The number of those who began looking for work fell for the second

straight month.

     * Compared to the year before, the number of employed rose 590,000 to 65.63

million in July, the 55th straight year-on-year rise, following +610,000 in

June.

     * The number of unemployed fell 120,000 on year to 1.91 million, the 86th

consecutive year-on-year drop, after -180,000 the previous month.

     * The latest data showed a continued tight labor supply in some sectors but

this has not led to a significant rise in average wages. Some restaurant chains

plan to raise prices in the wake of higher labor and materials costs, which are

expected to gradually help push up consumer prices.

--MNI Tokyo Bureau; tel: +81 90-2175-0040; email: hiroshi.inoue@marketnews.com

--MNI Tokyo Bureau; tel: +81 90-4670-5309; email: max.sato@marketnews.com

--MNI BEIJING Bureau; +1 202-371-2121; email: john.carter@mni-news.com

[TOPICS: MAJDS$,M$A$$$,M$J$$$]