| Consensus | Consensus Range | Actual | Previous | |
| Rate | 2.6% | 2.5% to 2.6% | 2.6% | 2.6% |
Highlights
Japan's seasonally adjusted unemployment rate was unchanged for the third straight month at 2.6% in November while broad-based labor shortages pushed Japanese payrolls higher for a 40th consecutive year-on-year increase.
The number of unemployed rose by 70,000 on year to 1.71 million in November as 60,000 people joined the market, looking for work and counted as being jobless.
Details:
Japan Nov s.a. unemployment rate 2.6% (Oct 2.6%); median forecast 2.6% (range: 2.5% to 2.6%)
Japan Nov employment up 480,000 y/y at 68.62 million for 40th straight y/y gain (Oct +520,000)
Japan Nov unemployed up 70,000 y/y at 1.71 mln (+130,000 in Oct at 1.83 mln); 4th straight rise
Market Consensus Before Announcement
Broad-based labor shortages are expected to push Japanese payrolls higher for a 40th consecutive year-on-year increase in November, while the seasonally adjusted unemployment rate is seen edging lower. This aligns with the Bank of Japan’s Tankan corporate sentiment survey for the December quarter, which pointed to strong labor tightness across sectors, with shortages particularly acute among smaller firms.
The seasonally adjusted unemployment rate is expected to be stable at 2.6 percent in November from a month earlier. In October, employment rose by 520,000 on the year to 68.65 million, led by gains in the medical and welfare industries, while declines were recorded in farming, manufacturing, and the wholesale and retail sectors.
The number of unemployed increased by 130,000, bringing the total to 1.83 million in October. By reason for job seeking compared with a year earlier, layoffs due to employer circumstances increased by 40,000, voluntary departures rose by 50,000, and new job seekers increased by 40,000 during the month.
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.