Japan’s jobless rate rises to 3%, a 3-year high

Home Business Japan’s jobless rate rises to 3%, a 3-year high
Japan’s jobless rate rises to 3%, a 3-year high

TOKYO • Japan's jobless rate rose in August to its highest in over three years and job availability fell to a more than six-year low, government data showed yesterday, indicating damage caused by the Covid-19 pandemic persisted through the month.

The figures come after new Prime Minister Yoshihide Suga pledged to protect jobs, keep companies in business and help the economy recover from the impact of measures taken to curb the spread of the coronavirus.

They also dull any optimism brought by recent data such as factory output and business sentiment that offered signs of economic recovery.

"The government's special employment subsidy to support firms hit by the coronavirus has helped to rein in the jobless rate, which could have risen much higher," said chief economist Atsushi Takeda at Itochu Research Institute.

"People have started to seek jobs but the labour market is not strong enough to absorb them. The pace of recovery in the jobs market is likely to slow and the unemployment rate could rise further."

Japan's seasonally adjusted jobless rate rose to 3 per cent in August, the highest since May 2017, Labour Ministry data showed. The result met analysts' median forecast of 3 per cent.

The data showed about 2.06 million people lost their jobs in August, 490,000 more than in the sRead More – Source