Job Availability Ratio Falls to 1.24

Jiji Press

12:31 JST, June 29, 2024

TOKYO (Jiji Press) — Japan’s seasonally adjusted ratio of effective job openings to seekers in May fell 0.02 point from the previous month to 1.24, the labor ministry said Friday.

The ratio continued to drop because the number of job seekers increased as many faced higher costs of living due to persisting inflation.

The ratio represents the number of job openings available to each seeker registered with Hello Work public job placement centers across the country.

The number of effective job vacancies rose 0.1%, while seekers increased a bigger 1.9%, resulting in the decline in the job availability ratio.

An Employment Security Bureau official said that many job seekers hope to change jobs or take on additional work for reasons such as rising prices and decreased income.

The number of new job openings, considered a leading economic indicator, slid 0.6% from the previous year.

By industry, manufacturers posted a 7.4% decline, and construction businesses logged a drop of 3.4%.

Higher raw materials and labor costs are believed to have weighed on companies, leading them to trim hiring.

Separately, the internal affairs ministry said that the country’s seasonally adjusted unemployment rate in May stood at 2.6%, the same as April.

The number of unemployed people stood at 1.82 million, down 10,000, with fewer workers leaving their jobs for personal reasons.