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MNI DATA IMPACT: Japan Labor Markets Worsen Further

MNI (London)
     TOKYO (MNI) - Japan's seasonally adjusted average unemployment rate rose to
2.6% in April from 2.5% in March, for the highest level since December 2017 when
it stood at 2.7%, data from the Ministry of Internal Affairs and Communications
released Friday showed.
     The number of employed fell 1.07 million (-1.6%) m/m in April vs. a drop of
110,000 in March, while the number of unemployed rose 60,000 (+3.5%) after
rising 60,000 (+3.6%) in March.
     The job-to-applicant ratio fell to 1.32 in April from 1.39, for the lowest
level in four years and one month, indicating that the unemployment rate will
rise to 3% or higher in coming months, according to data released by the
Ministry of Health, Labour and Welfare.
     However, the government's employment adjustment subsidy fund in the
supplementary budget will boost wage subsidy pot, helping prevent unemployment
rate from rising sharply.
     The impact of rising bankruptcies caused by the spread of the coronavirus
on the labor market and consumer confidence is being limited, helped by central
bank and government action.
     Bank of Japan officials are watching developments in the labor market as
the tightness in conditions is a main pillar of supporting its economic
assessment.
--MNI Tokyo Bureau; tel: +81 90-2175-0040; email: hiroshi.inoue@marketnews.com
--MNI London Bureau; tel: +44 203-586-2225; email: les.commons@marketnews.com
[TOPICS: MAJDS$,M$A$$$,M$J$$$]
MNI London Bureau | +44 203-865-3812 | les.commons@marketnews.com
MNI London Bureau | +44 203-865-3812 | les.commons@marketnews.com

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