| Consensus | Consensus Range | Actual | Previous | |
|---|---|---|---|---|
| Rate | 2.5% | 2.4% to 2.6% | 2.5% | 2.5% |
Highlights
Japanese payrolls posted their 33rd straight rise on year in April amid chronic shortages of construction workers, truck drivers and system engineers as well as easing but still tight conditions at hotels and restaurants. The seasonally adjusted unemployment rate stays low and stable at 2.5% after ticking up to 2.5% in March from 2.4% in February. The same 2.4% rate in September 2024 was the lowest in more than four years (since 2.4% in February 2020).
The government continues to describe employment conditions as"showing signs of improvement in its latest monthly economic report. Major firms are raising base wages to meet or exceed union demands in the fiscal year that began on April 1 but real wages are falling in the face of elevated consumer inflation, keeping many households wary of spending beyond necessities.
The unemployment rate in April was unchanged from March because month-on-month increases in job cuts/retirements and the number of people who began looking for work and thus were counted as being jobless were partly offset by the number of those who quit for other openings.
In unadjusted data, employment rose 460,000 on the year to 67.96 million in April after rising 440,000 the previous month. The number of unemployed fell by 50,000 to 1.88 million after falling 50,000 the previous month. In December 2024, it dipped 20,000 for the fifth straight year-on-year drop to a pre-pandemic level of 1.54 million, which was the lowest since 1.46 million in December 2019 (it was 1.60 million in January 2020).
The year-on-year job creation was led by the return to a sharp increase in the medical and welfare industry as well as a jump in other services and a continued rise in education and learning support. Manufacturing jobs slumped after a slight rebound the previous month. The construction and transport industries continued shedding payrolls as they have failed to recruit workers who are shying away from long work hours and other severe conditions.
The government continues to describe employment conditions as"showing signs of improvement in its latest monthly economic report. Major firms are raising base wages to meet or exceed union demands in the fiscal year that began on April 1 but real wages are falling in the face of elevated consumer inflation, keeping many households wary of spending beyond necessities.
The unemployment rate in April was unchanged from March because month-on-month increases in job cuts/retirements and the number of people who began looking for work and thus were counted as being jobless were partly offset by the number of those who quit for other openings.
In unadjusted data, employment rose 460,000 on the year to 67.96 million in April after rising 440,000 the previous month. The number of unemployed fell by 50,000 to 1.88 million after falling 50,000 the previous month. In December 2024, it dipped 20,000 for the fifth straight year-on-year drop to a pre-pandemic level of 1.54 million, which was the lowest since 1.46 million in December 2019 (it was 1.60 million in January 2020).
The year-on-year job creation was led by the return to a sharp increase in the medical and welfare industry as well as a jump in other services and a continued rise in education and learning support. Manufacturing jobs slumped after a slight rebound the previous month. The construction and transport industries continued shedding payrolls as they have failed to recruit workers who are shying away from long work hours and other severe conditions.
Market Consensus Before Announcement
Japanese payrolls are expected to post their 33rd straight rise on year in April amid chronic shortages of construction workers, truck drivers and system engineers as well as easing but still tight conditions at hotels and restaurants. The seasonally adjusted unemployment rate is forecast to remain low and stable at 2.5% (economist forecasts ranged from 2.4% to 2.6%) after ticking up to 2.5% in March from 2.4% in February. The 2.4% rate in September 2024 was the lowest in more than four years since 2.4% in February 2020.
The government continues to describe employment conditions as"showing signs of improvement” in its latest monthly economic report for May released last week. It continued to put on a brave face on the global trade war and politically explosive food price inflation, maintaining its cautiously optimistic domestic economic outlook for the ninth straight month, saying the economy is expected stay on a “modest recovery” track.
Major firms are raising base wages to meet or exceed union demands in the fiscal year that began on April 1 but real wages are falling in the face of elevated consumer inflation, keeping many households wary of spending beyond necessities.
The government continues to describe employment conditions as"showing signs of improvement” in its latest monthly economic report for May released last week. It continued to put on a brave face on the global trade war and politically explosive food price inflation, maintaining its cautiously optimistic domestic economic outlook for the ninth straight month, saying the economy is expected stay on a “modest recovery” track.
Major firms are raising base wages to meet or exceed union demands in the fiscal year that began on April 1 but real wages are falling in the face of elevated consumer inflation, keeping many households wary of spending beyond necessities.
Definition
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.
Description
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.
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.
