Japanese payrolls posted a 20th straight rise on year in March amid labor shortages at hospitals, hotels, restaurants and telecommunications firms while the unemployment rate was unchanged after rising unexpectedly to a five-month high of 2.6 percent in February from a nearly four-year low of 2.4 percent in January. The seasonally adjusted jobless rate of 2.6 percent in March was slightly higher than the median forecast of 2.5 percent. The January rate was the lowest since 2.4 percent in February 2020.

Compared to the previous month, the number of people who lost their jobs or retired rose 4.5 percent in March, slowing from a 22.2 percent jump in February. The number of those who began looking for work and thus were counted as being unemployed was flat after rising in the previous two months. Those two factors were offset by a continued solid pace of increase in the number of those who quit to look for better positions, up 2.6 percent versus 2.7 percent in February, amid tight labor conditions and rising wages.

In its monthly economic report for March released last week, the government maintained its overall assessment, saying the economy is recovering moderately backed by a high pace of wage hikes amid widespread labor shortages. It also repeated that employment conditions are"showing signs of improvement."

Econoday's Relative Performance Index stands at minus 1, just below zero, which indicates the Japanese economy is performing largely as expected. Excluding the impact of inflation, the RPI is at plus 38.

Japanese payrolls are expected to post their 20th straight rise on year in March as labor shortages remain at factories, hotels and restaurants. The unemployment rate is forecast to edge down to 2.5 percent after unexpectedly rising to a five-month high of 2.6 percent in February from a nearly four-year low of 2.4 percent in January. The number of people who lost their jobs or retired likely fell on the month in March after surging 22.2 percent previously and those who had quit to look for other openings may have found work. Tight labor conditions in some sectors are expected to continue as new regulations on limiting overtime hours for drivers, construction workers and doctors took effect on April 1.

The Unemployment Rate measures the number of unemployed as a percentage of the labor force. The unemployment rate is part of the Labour Force Survey which also includes employment data.

The unemployment rate and employment change are carefully monitored. The employment data show the number employment along with the change in employment for the previous year. Monthly changes in employment also help clarify whether businesses are hiring. The unemployment rate is the percentage of the labor force that is unemployed. A lower jobless rate translates into more income earning workers and greater consumption. Increased spending is a positive for consumer oriented economic growth, something that has lagged in Japan.

By tracking the jobs data, investors can sense the degree of tightness in the job market. If wage inflation threatens, it's a good bet that interest rates will rise; bond and stock prices will fall. No doubt that the only investors in a good mood will be the ones who watched the employment report and adjusted their portfolios to anticipate these events.