MNI DATA IMPACT:Japan Nov Jobless Sees 1st Drop in Five Months

Japan's average unemployment rate last month posted the first drop in five months at seasonally adjusted 2.9%, down from 3.1% in October, which was the highest since May 2017, data released by the Ministry of Internal Affairs and Communications Friday showed.

The total number of people employed rose 430,000 (+0.6%) m/m in November, after falling 30,000 (+0.0%) in October, and the number of unemployed fell 160,000 (-7.5%) from the previous month after gaining 80,000 (+3.9%) in October.

The job-to-applicant leading indicator rose for the second month by 1.06 from 1.04 in October, indicating that the number of unemployed returning to the job market has increased, according to data released by the Ministry of Health, Labour and Welfare.

But the unemployment rate is expected to rise in the coming months giving the data lag and service businesses are required to shorten their business hours amid social distancing.

Bankruptcies and resulting job losses have been minimized to date due to corporate financing supports by the BoJ and the government. However, some companies continue to see sluggish profits or sales in the wake of social distancing.

Face-to-face services are ordered to be reduced in the wake of the spread of coronavirus.