Japan June Jobless Rate Returns To 2.8% From 3.1% in May

--MNI June Jobless Rate Median Forecast 3.0%

--Japan June Employment +610,000 Y/Y; May +760,000

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

Affairs and Communications released Friday.

     * The seasonally adjusted average unemployment rate fell to 2.8% in June

from 3.1% in May, returning to the rate seen from February to April this year,

which was the lowest since June 1994, when it was also at 2.8%. The drop in the

unemployment rate in June was the first since February this year, when it fell

to 2.8% from 3.0% in January.

     * The number of employed rose 120,000 (+0.2%) on month vs. a drop of 30,000

(-0.0%) in May, while the number of unemployed fell 160,000 (-7.8%). The number

of people who left for other openings fell 11.0% on month and the number of

people who lost their jobs dropped 3.8%.

     * June jobs data showed a continued tight labor supply in some sectors but

this has not led to a significant rise in average wages. Companies are generally

reluctant to raise base wages, which would increase their fixed labor costs.

     * Compared to the year before, the number of employed rose 610,000 to 65.83

million in June, the 54th straight year-on-year rise, following +760,000 in May.

     * The number of unemployed fell 180,000 on year to 1.92 million, the 85th

consecutive year-on-year drop, after -70,000 the previous month.

--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$$$,M$J$$$]