Japan’s Jobless Rate Falls to Lowest in a Quarter Century
- Job-to-applicant ratio hits highest level since 1974
- Factory output slips in May after three straight gains
Japan’s tightest labor market in decades just got even tighter, driving companies to hire more workers in full-time, permanent positions. That’s positive news for the Bank of Japan as it struggles to generate 2 percent inflation. Consumer prices in Tokyo, a leading indicator for the nation, rose more than expected after two months of slower increases.
The employment data released on Friday point to stronger upward pressure on wages, which so far haven’t responded as expected to the super-tight labor market. As companies struggle to find workers they’re hiring more staff on permanent, full-time contracts, which generally means higher pay and benefits. A job-applicant ratio at a 44-year high also points in the right direction for wages and inflation.