MNI DATA IMPACT: Japan Oct Jobless Rate Highest Since May 2017

Japan's average unemployment rate stood at a seasonally-adjusted 3.1% in October, up from 3.0% in September and equal to the highest level since May 2017, according to data released by the Ministry of Internal Affairs and Communications on Tuesday.

The total number of employed fell 30,000 (+0.0%) m/m in October, after falling 40,000 (-0.1%) in September, and the number of unemployed rose 80,000 (+3.9%) from the previous month after rising 10,000 (+0.5%) in September.

The job-to-applicant ratio, a leading indicator of the employment market, rose to 1.04 in October from 1.03 in September, for the first rise since April 2019, indicating improving labor market conditions, according to data released by the Ministry of Health, Labour and Welfare.

But unemployment rate is expected to rise further in the coming months as it is a lagging indicator, and the number of people seeking work is increasing.

The number of bankruptcies and resulting job losses have been minimized due to government measures to support corporate financing taken by the Bank of Japan. However, some companies continue to see sluggish profits or sales due to social distancing.

Face-to-face services have been requested to shorten their business hours to minimise the spread of the coronavirus, possibly reducing employment.