Japan’s job availability rate in June fell 0.01 point from the previous month to 1.23, marking its lowest level in 27 months, as rising costs limited recruitment, Ministry of Health, Labor and Welfare data showed Tuesday. The monthly figure indicates there were 123 jobs available for every 100 job seekers. It is the third consecutive month of decline. Every sector recorded fewer available jobs than a year prior. Leading the decline was the manufacturing sector, with a 14.6 percent fall, and lifestyle and entertainment services, down 13.7 percent.
The fall came even as Japan experiences labour shortages due to an aging population. “As a whole, shortages mean the labor market continues to be good for job seekers,” said Koichi Fujishiro, senior economist at the Dai-ichi Life Research Institute. “But it appears companies are giving up on hiring people for posts they have had open for some time, leading to balanced contractions,” he said, citing skill mismatches as a major reason for the unfilled positions.
In separate data, Japan’s unemployment rate in June fell to 2.5 percent from 2.6 percent the previous month. It was the first improvement in five months, led by fewer people voluntarily leaving their jobs amid fewer job openings, the Internal Affairs and Communications Ministry data showed. People with jobs totalled 68.22 million in June, up 370,000 from a year earlier and the highest number since comparable records began in 1953, according to an official at the ministry. The number of employed men was 37.30 million, up 110,000. The number of women stood at 30.93 million, rising 280,000 to its highest total since 1953, the official said. On a seasonally adjusted basis, the total number of unemployed people fell 3.3 percent from a month earlier to 1.76 million, as fewer people left their jobs voluntarily or newly sought work. Of those not in work, 740,000 voluntarily left their jobs, down 10,000 people, or 1.3 percent, from May. Conversely, 20,000 more workers were let go by their employers, up 4.5 percent from the previous month to 460,000 people.
