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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
JAPAN DATA
Japan's July unemployment rate rose top 2.7%, versus 2.5% forecast (prior was 2.5%). The job to applicant ratio eased to 1.29, versus 1.30 expected, which was also the prior result. At face value the data suggest a loss of momentum in terms of the labor market.
- In terms of the detail, the number of employed fell by 100k, while unemployed persons rose 110k from June.
- New job offers fell -2.5% y/y, the second straight y/y fall, although this series can be quite volatile. The new jobs to applicant ratio eased back to 2.27, from 2.32. Late 2022/early 2023 highs were at 2.38 for this metric.
- The chart below shows the unemployment rate overlaid against the job-to-applicant-ratio, which is inverted on the chart.
- Insofar as this data suggests the best of the labor market strength is now behind it adds a modest dovishness to the BoJ outlook, given the data hints at less upside on wage pressures, all else being equal.
Fig 1: Japan Unemployment Rate & Job-To-Applicant Ratio (Inverted)
Source: MNI - Market News/Bloomberg
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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