MNI DATA IMPACT: Japan Labor Market Turns Lower In Aug

Japan's average unemployment rate rose to a seasonally-adjusted 3.0% in August from 2.9% in July, as an increase in those employed, was outpaced by the number of new job seekers as the economy reopened, data released by the Ministry of Internal Affairs and Communications released Friday showed.

August's 3.0% is the highest level since May 2017 when it stood at 3.1%.

The total number of employed rose 110,000 (+0.2%) m/m in August, the same as seen in July, while the number of unemployed rose 90,000 (+4.6%) from the previous month after rising 20,000 (+1.0%) in July.

The job-to-applicant ratio, a leading indicator of the employment market, fell to 1.04 in August from 1.08 in July, the lowest level since January 2014 when it was at 1.04, indicating unemployment rate is expected to rise further in the coming months, according to data released by the Ministry of Health, Labour and Welfare.

The government has extended the Employment Adjustment Subsidy Fund to support employment through end-December from end-September.

The number of bankruptcies and resulting job losses have been minimized 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.