Japan's jobless rate hits 2.4 per cent in January amid labour shortage: Report

The latest government data from Reuters reveals that Japan's jobless rate experienced a notable decline, reaching 2.4 per cent in January, down from a revised 2.5 per cent in the previous month.

This positive shift, the first in three months, aligns with economists' expectations, as the seasonally adjusted unemployment rate met the median forecast in a Reuters poll.

The jobs-to-applicants ratio, a key indicator of labour market health, remained steady at 1.27, matching the median forecast.

This ratio signifies that there were 127 jobs available for every 100 job seekers, reflecting the persistent tightness in the labour market.

The stability of this ratio suggests a balance between job demand and supply in the country.

According to a report by the Mainichi, the Ministry of Internal Affairs and Communications reported a decrease of 30,000 employed individuals in January, bringing the total to a seasonally adjusted 67.61 million.

Concurrently, the number of unemployed individuals dropped by 1.2 per cent to 1.70 million.

Notably, 750,000 people voluntarily left their jobs, representing a 1.3 per cent decrease, while 360,000 individuals were dismissed, marking a 7.7 per cent decline from the previous month.

The report cited Yuichi Kodama, chief economist at the Meiji Yasuda Research Institute, who attributed the improvement in the jobless rate to a reduction in involuntary job losses, particularly related to company bankruptcies or restructuring.

Despite the positive trend, the labour market remains tight, with steady growth observed in the face-to-face service sectors, such as entertainment.

The information and communication sector is also experiencing increased employment, driven by a recovery in the semiconductor industry.

The breakdown of gender-specific unemployment data showed a rise of 60,000 unemployed women in January, reaching a total of 730,000.

This increase is attributed to more women leaving their jobs in pursuit of better working conditions amid the ongoing economic recovery.

In contrast, the number of unemployed men declined by 90,000, totalling 960,000.

The job-to-applicant ratio remains unchanged, indicating labour shortages in various industries, including medical and welfare, while others, like construction and manufacturing, struggle to offer job openings.

Analysis of specific sectors reveals a diverse landscape in job offers.

Lifestyle and entertainment services witnessed a 5.7 per cent increase, and information and communications experienced a 4.5 per cent climb.

However, the manufacturing sector saw an 11.6 per cent decline in job offers, and the accommodation and food services industry recorded an 8.8 per cent decrease.

(With inputs from Reuters)