— Japan July SA Jobs +210,000 M/M (+0.3%) Vs June +40,000
— Japan July SA Unemployed -60,000 M/M (-1.7%) Vs June +70,000
— Japan July NSA Jobs +10,000 Y/Y, 1st Rise In 30 Mths; June -200,000
— Japan July NSA Unemployed -280,000 Y/Y; 2nd Drop In Row; June -40,000
— Japan July Job Offers-To-Seekers Ratio 0.53 Vs June 0.52

TOKYO (MNI) – Japan’s unemployment rate fell to 5.2% in July from
5.3% in June, as the number of unemployed marked the first
month-on-month drop in five months and more jobs were created for the
second straight month, data from the Ministry of Internal Affairs and
Communications showed Friday.

A gradual improvement in the labor market was also confirmed in
year-on-year changes, with number of employed people rising 10,000 from
July last year, posting the first y/y gain in 30 months.

The seasonally adjusted unemployment rate for July came in lower
than the consensus call of a 5.3% reading.

The July jobless rate was below the record high of 5.6% hit in July
2009, but was still higher than the 4.2% rate seen at the start of 2009.

In July, the number of unemployed fell by a seasonally adjusted
60,000 from the previous month, or 1.7%, to 3.41 million, compared with
a rise of 70,000 in June.

It was the first m/m drop in five months since -70,000 in
February.

The number of payroll jobs rose by a seasonally adjusted 210,000
month-on-month, or 0.3%, to 62.46 million, showing the second straight
m/m gain, after rising 40,000 m/m in June.

On an unadjusted basis, the number of employed people posted the
first year-on-year rise in 30 months in July, up slightly by 10,000 y/y
to 62.71 million.

The unadjusted number of jobless workers was down by 280,000 from a
year earlier at 3.31 million in July, marking the second consecutive
year-on-year decline, after falling 40,000 in June and being flat in
May.

Job losses remained largely in construction, manufacturing and
wholesale and retail trade. But job cuts in those industries decelerated
from the previous month.

Medical, health care and welfare, scientific research, professional
and technical services, as well as information and communications
continued to create jobs.

The Japanese economy has moved out of the sharp contraction seen
early last year, but the jobless rate is a lagging indicator that
typically follows economic movements after a delay of several months.

The Bank of Japan has said that the employment and income situation
remained severe but that the degree of severity has eased somewhat.

The BOJ board is watching the negative impact of the recent rise in
the yen and slumping share prices on the moderate economic recovery as
financial market instability could hurt business sentiment and prompt
firms to be cautious about hiring new graduates and investing in
equipment.

Other details of the report follow:

The number of those who lost their jobs and were looking for work:
July -190,000 y/y at 1.02 million vs. June -200,000.

The number of people who quit their job voluntarily to look for
other openings: July -30,000 y/y at 1.07 million vs. June +80,000.

Separately, the Ministry of Health, Labor and Welfare said that the
ratio of job offers to job seekers at government placement offices stood
at a seasonally adjusted 0.53 in July, up from 0.52 in June. That means
there were only 53 job offers for every 100 people looking for work but
it was better than the month before.

tokyo@marketnews.com
** Market News International Tokyo Newsroom: 81-3-5403-4833 **

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