MNI DATA IMPACT: Japan Sep Jobless Rate Stays at 3-Year High

Japan's average unemployment rate stood at a seasonally-adjusted 3.0% in September, unchanged from August's 3.0% and maintaining a three-year high as businesses in non-manufacturing sectors remained weak, according to data released by the Ministry of Internal Affairs and Communications on Friday.

The 3.0% print for September and August is the highest level since 3.1% in May 2017.

The total number of employed fell 40,000 (-0.1%) m/m in September, after rising 110,000 (+0.2%) in August, and the number of unemployed rose 10,000 (+0.5%) from the previous month after rising 90,000 (+4.6%) in August.

The job-to-applicant ratio, a leading indicator of the employment market, fell to 1.03 in September from 1.04 in August, the lowest level since December 2013, indicating the unemployment rate is expected to rise further in the coming months, according to data released by the Ministry of Health, Labour and Welfare.

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