Japan's unemployment rate just got a whole lot lower but...

Author: Justin Low | Category: News

It's yet to translate to any meaningful form of wage or inflation pressures in the economy

And there is still much shortage of workers in Japanese companies as well. Eamonn had the data out here earlier.

The unemployment rate fell to 2.4%, the lowest since April 1993, but the job-to-applicant ratio was at its highest levels since the 1970's - at 1.59. That means for every 100 job applicants applying, there are 159 positions available to be filled.

That's a major gap still to be filled, and the country's aging and declining population is not going to help with the situation. One solution is to go with skilled foreign workers, something that Japanese PM Abe is looking into until the recent farce in statistical count earlier this week put a setback in his plans.

But with labour markets already so tight, and wage or inflation pressures still so subdued, just how much more can the BOJ and Kuroda hope for so that it will rise towards their 2% target?

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