MNI DATA IMPACT: Japan Jun Jobless Rate Drops to 2.8% Vs. 2.9%

Japan's seasonally adjusted average unemployment rate fell to 2.8% in June from 2.9% in May as the number of job seekers fell, according to data released by the Ministry of Internal Affairs and Communications released on Friday.

May's 2.9% was the highest level seen since February 2017 when it was also at 2.9%.

The total number of employed rose 80,000 (+0.1%) m/m in June vs. a rise of 40,000 (+0.1%) in May, while the number of unemployed fell 30,000 (-1.5%) from the previous month after jumping 190,000 (+10.7%) in May.

The job-to-applicant ratio fell to 1.11 in June from 1.20, the lowest level since October 2014 when it was at 1.14, indicating, according to data released by the Ministry of Health, Labour and Welfare.

The number of bankruptcies and resulting job losses have been minimised to date due to measures to support corporate financing taken by the Bank of Japan and the government. However, some companies continue to see sluggish profits or sales in the wake of social distancing.

BOJ economists are watching developments in the labour market closely, as the levels of tightness i is a main pillar of its economic assessment.