News: Japan observes biggest dip in unemployment rate since 1974

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Japan observes biggest dip in unemployment rate since 1974

The unemployment rate may not account for millions of people who have simply left the labour market after giving up their search for a job.
Japan observes biggest dip in unemployment rate since 1974

According to an official data released, Japan's unemployment rate rose to 2.9 percent in May. It is also the third consecutive monthly rise in unemployment level as the coronavirus pandemic takes a toll on the world's number-third economy.

The 0.3-percentage-point rise from April suggests Japan's first recession since 2015 is beginning to have an impact on the labour market. Another closely watched indicator showed there were 120 jobs available for every 100 jobseekers, compared to 132 jobs in April -- the steepest drop since the 1974 oil shock.

Set against the millions of newly unemployed seen in major economies like the United States, Japan appears to have weathered the economic chaos of the pandemic.

However, economists say the situation is not as rosy as the low headline figure may suggest, with persistent labour shortages hampering companies and millions struggling on precarious temporary contracts.

According to media reports it has been indicated that the low rate may not account for millions of people who have simply left the labour market after giving up their search for a job.

The pandemic has not hit Japan particularly hard, with fewer than 1,000 deaths and around 19,000 cases recorded.

There have been no mandatory lockdowns, with the government instead requesting people stay at home,requests that were largely heeded. But that, coupled with a shuttering of the country's borders, crippled tourism and consumer spending.

In a bid to pep up the economy, the government and central bank have offered trillions of yen (billions of dollars) in stimulus packages and cheap loans, while maintaining an ultra-loose monetary policy.

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Topics: Talent Acquisition, #COVID-19

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