MNI DATA IMPACT: Japan Labor Markets Worsen Further

     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

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