Published by: Fatma AlSayegh
1 December 2016
For the first time in 21 years, the unemployment rate is at its lowest level at 3%. The ratio of job offers to applicants increased to 1.34 in April, which is the highest since November 1991. In other words, there were 134 positions available for every 100 job-seeker.
Japan’s economy has managed to flee from a recession in the January-March quarter.
There is no doubt that the Japanese labor market is tight. The tightness is derived from the decrease in the Japanese working population from the increase of demand for labor. An increase in wages is essential to improve the market conditions. But wages are not increasing as rapidly as the people would have wanted, why? Because there is a handful of unenthusiastic employees and those wishing to work full-time but are now working in part-time jobs
“Economic growth remains unstable and fragile,” said Yasunari Ueno, chief market economist at Mizuho Securities Co., also adding that the country needed a main growth driver.
The Ministry of Internal Affairs and Communications came out and said that the average household spending fell a seasonally adjusted 0.4% in April 2016, beating market forecasts of a sooner decrease.
Spending on housing, clothing, as well as transportation and communications, decreased significantly on a year-on-year basis, while spending on education increased.