Berita 24 English - Japan's unemployment rate increased, and job availability decreased in April, data showed on Friday, underscoring t...
Berita 24 English - Japan's unemployment rate increased, and job availability decreased in April, data showed on Friday, underscoring the economic pain caused by the country's protracted battle with COVID-19.
Separate data indicated that core consumer prices in Tokyo fell in May, reinforcing expectations that inflation will remain well below the central bank's 2% target for the foreseeable future.
The government is considering extending state of emergency restrictions to combat the pandemic by approximately three weeks, to June 20, a cabinet minister said Friday, casting doubt on the fragile recovery's prospects.
Japan's unemployment rate increased to 2.8 per cent in April from 2.6 per cent in March, government data showed Friday, exceeding market expectations of 2.7 per cent.
The jobs-to-applicants ratio was 1.09, down from 1.10 the previous month, which was also the forecast in a Reuters poll.
"Job offers may have decreased again in May as a result of the third round of national emergencies. This could further stall the employment recovery, "Capital Economics economist Tom Learmouth concurred.
"However, we continue to anticipate that employment and the labour force will return to pre-virus levels in the second half of the year, as vaccines allow the economy to fully recover."
Separate data showed on Friday that core consumer prices in Tokyo, which are considered a leading indicator of national figures, fell 0.2 per cent in May from a year earlier, matching a median market estimate.
Japan's economy contracted in the first quarter, and many analysts anticipate a modest rebound in the current quarter, as renewed state-of-emergency curbs weigh on consumer spending.
Domestic demand weakness has fueled fears of a return to deflation even as inflation in other major economies has increased, putting pressure on the Bank of Japan to maintain massive stimulus.
The anticipated extension of a state of emergency restrictions to combat COVID-19 increases the likelihood that the BOJ will extend the current September deadline for a package of measures to cushion the economic impact of the health crisis.
