2023-12-26 09:30:59
Japan’s unemployment rate remained stable in November at 2.5% of the working population, according to seasonally adjusted data released Tuesday by the Ministry of Internal Affairs and in line with economists’ expectations.
A “tighter” labor market might provide support for annual wage negotiations between Japanese unions and employers next spring.
The Rengo confederation, the main workers’ union in Japan, announced that it would demand wage increases of around 5% on this occasion, its most ambitious objective in almost 30 years.
Insufficient wage increases in the archipelago are one of the reasons given by the Bank of Japan (BoJ) to justify the maintenance of its ultra-accommodating monetary policy, contrary to those observed in other major economies.
Last week, BoJ Governor Kazuo Ueda said that it was still necessary to “verify whether a virtuous circle between wages and prices can be achieved”.
The ratio between job offers and applications also fell in November to 1.28 compared to 1.30 in October, meaning that there were 128 job offers for 100 applications.
“As a result, we expect the labor market to ease somewhat once more over the coming months,” commented Gabriel Ng in a note from Capital Economics.
“We expect the unemployment rate to reach 2.7% by the end of the year and remain stable at least until the middle of next year, while GDP will slow,” he said. -he adds.
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