MNI DATA IMPACT: Japan Labour Market Weaker

--May Jobless Rate At 2.9% Vs. 2.6% in April

--May's 2.9% Highest Since February 2017

     TOKYO (MNI) - Japan's seasonally adjusted average unemployment rate rose to

2.9% in May from 2.6% in April, equivalent to the highest level since February

2017, according to data from the Ministry of Internal Affairs and Communications

released on Tuesday.

     The number of employed rose 40,000 (+0.1%) m/m in May vs. a drop of 1.07

million (-1.6%) in April, while the number of unemployed rose 190,000 (+10.7%)

from the previous month after rising 60,000 (+3.5%) in April.

     The job-to-applicant ratio fell to 1.20 in May from 1.32, the lowest level

in nearly five years and the largest point decline since 1974, 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.

     The impact of rising bankruptcies caused by the spread of the coronavirus

on the labour market and consumer confidence is being limited by central bank

and government action.

     Bank of Japan officials are watching developments in the labour market as

the tightness in conditions is a main pillar of its economic assessment.

--MNI Tokyo Bureau; tel: +81 90-2175-0040; email: hiroshi.inoue@marketnews.com

--MNI Sydney Bureau; +61 405322399; email: lachlan.colquhoun.ext@marketnews.com

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