Global| Apr 15 2004Japanese Job Market Struggles Toward Recovery
Summary
Employment in Japan in February showed further signs of recovery, as a jobs index released today by the Ministry of Health, Labor and Welfare ticked up to 98.6 (seasonally adjusted, 2000=100), its highest level since March of last [...]
Employment in Japan in February showed further signs of recovery, as a jobs index released today by the Ministry of Health, Labor and Welfare ticked up to 98.6 (seasonally adjusted, 2000=100), its highest level since March of last year. Further, it is only 0.1 point below its year-ago value, the best (or least bad) performance since August 1998. Japan has indeed endured more than 5-1/2 years of job shrinkage. And 1997 was the last full calendar year that saw a rise.
Employment patterns remain inconsistent, however. Only the service sector is showing outright increases in employment, while finance and construction are still declining markedly. Manufacturing jobs are still decreasing, too, but at a much slower pace than anytime since early 1998. The year-on-year reduction in February of just 1.4% extends a progressive improvement from a 5.1% plunge in May 2002.
Thus, Japan's job market continues to struggle, but appears to be working its way back toward growth. Similarly, wage rates are also approaching stability, but they too are uneven from month to month and recently have been particularly erratic.
| NSA, Yr/Yr %Chg, except where noted | Feb 2004 | Jan 2004 | Feb 2003 | 2003 | 2002 | 2001 |
|---|---|---|---|---|---|---|
| Employment Index, (SA, 2000=100) |
98.6 | 98.5 | 98.7 | 98.4 | 98.9 | 99.6 |
| Yr/Yr %Chg | -0.1 | -0.1 | -0.5 | -0.7 | -0.4 | |
| Construction | -6.4 | -7.1 | -1.5 | -0.4 | +0.6 | |
| Manufacturing | -1.4 | -1.4 | -2.2 | -4.6 | -2.9 | |
| Finance | -3.0 | -3.6 | -2.3 | -2.4 | -4.3 | |
| Services | +2.0 | +2.2 | +1.3 | +2.3 | +2.2 | |
| Wage Index, (SA, 2000=100) | 98.4 | 96.4 | 98.9 | 97.4 | 98.0 | 99.7 |
| Yr/Yr %Chg | -0.4 | -1.4 | -0.6 | -1.9 | -0.5 |
Carol Stone, CBE
AuthorMore in Author Profile »Carol Stone, CBE came to Haver Analytics in 2003 following more than 35 years as a financial market economist at major Wall Street financial institutions, most especially Merrill Lynch and Nomura Securities. She has broad experience in analysis and forecasting of flow-of-funds accounts, the federal budget and Federal Reserve operations. At Nomura Securites, among other duties, she developed various indicator forecasting tools and edited a daily global publication produced in London and New York for readers in Tokyo. At Haver Analytics, Carol is a member of the Research Department, aiding database managers with research and documentation efforts, as well as posting commentary on select economic reports. In addition, she conducts Ways-of-the-World, a blog on economic issues for an Episcopal-Church-affiliated website, The Geranium Farm. During her career, Carol served as an officer of the Money Marketeers and the Downtown Economists Club. She has a PhD from NYU's Stern School of Business. She lives in Brooklyn, New York, and has a weekend home on Long Island.
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