Benchmark
Japan’s Tight Labor Market Has Problem Sectors That Crimp Wages
Lack of flexibility in some areas reduces price pressure
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Economic theory suggests that the tightest labor market in more than forty years ought to be more than enough to push wages and inflation higher in Japan. Reality is proving different.
A sector-by-sector look at the job-to-applicant ratio released on Friday shows pockets of significant looseness, especially in areas like clerical work, as shown in the chart below.