–Higher Job Losses, Retirements on Month Offset by Fewer Quits for Other Openings, Flat New Job Seekers
–Hotels, Restaurants Continue Hiring Workers; Construction Jobs Down for 2nd Straight Month After Recent Gains
–Number of Unemployed Posts 1st Year-on-Year Rise in 3 Months
By Max Sato
(MaceNews) – Japanese payrolls surged on year in November for a 16th straight increase, led by a sharp rebound in manufacturing and medical/welfare services jobs and a continued hiring spree by hotels, restaurants and communications firms amid labor shortages, while the unemployment rate was unchanged at 2.5% after improving for the second month in a row in October, data released Tuesday by the Ministry of Internal Affairs and Communications showed.
The seasonally adjusted average unemployment rate stood at 2.5% in November, unchanged from October, when it fell from 2.6% in September and 2.7% in August. It was in line with the median economist forecast of 2.5% (forecasts ranged from 2.4% to 2.6%).
The latest figure is below 2.8% seen in March but is still just above the three-year low of 2.4% hit in January 2023. It remains below the recent high of 3.1% reached in October 2020 but is above 2.2% recorded in December 2019, just before the pandemic triggered a global economic slump.
The jobless rate moved in tight ranges of 2.7% to 3.0% in 2021 and 2.5% to 2.8% in 2022.
In its monthly economic report for December released last week, the government maintained its overall assessment after downgrading it in November for the first time in 10 months in light of sluggish capital investment, saying the economy is still recovering moderately but that the pickup in some areas is pausing. It kept its view on employment conditions after upgrading it for the first time in 11 months in June, saying they are “showing signs of improvement.”
Compared to a year earlier, the number of employed soared 560,000 to an unadjusted 67.80 million in November for the 16th straight increase, led by women and both regular and non-regular jobs. It followed increases of 160,000 in October, 210,000 in September, 220,000 in August, 170,000 in July, 260,000 in June, 150,000 in May, 140,000 in April, 150,000 in March and 90,000 in February and a 430,000 surge in January.
The number of unemployed rose 40,000 on the year to an unadjusted 1.69 million in November for the first rise in three months, after falling 30,000 to a nine-month low of 1.67 million in October, slipping 50,000 in September, rising 90,000 in August and climbing 70,000 in July for the first rise in three months. It marked its first year-over-year rise in 21 months in March with a 130,000 jump. It has drifted down from a pandemic peak of 2.17 million in October 2020 but is still above the 1.65 million level seen at the beginning of 2020.
The overall employment increase in November from a year earlier was led by a sharp rebound in both manufacturing and medical/welfare services jobs. The hotels, restaurants and bars category continued to increase payrolls as people have been traveling and eating out more freely since the government widely lifted Covid restrictions in May. Information communications firms including news media, mobile phone carriers and software developers hired more people for the second straight month.
The construction industry shed workers on year for the second month in a row after hiring actively earlier. Financial firms trimmed payrolls from year-earlier levels for the sixth consecutive month in November.
Employment in the wholesale and retail industry marked the first year-over-year decline in seven months after rising at a slower pace and posting sharp gains in August and July. The real-estate and goods leasing category posted a slight gain for the second month in a row after recent drops.