japan’s tight labor market offers hope for consumer spending
Last Updated : GMT 06:49:16
Arab Today, arab today
Arab Today, arab today
Last Updated : GMT 06:49:16
Arab Today, arab today

Japan’s tight labor market offers hope for consumer spending

Arab Today, arab today

Arab Today, arab today Japan’s tight labor market offers hope for consumer spending

Japanese household spending fell 1.4 percent in April
Tokyo - Arab Today

Labor demand in Japan rose to its strongest in more than 40 years while the unemployment rate held steady at a two-decade low in April, offering hope that a tight labor market will eventually spark a turnaround in weak consumer spending.
Separate data showed household spending fell more than expected in April due to lower spending on cars and education fees as consumer spending continues to lag behind the improvement in other areas of the economy, such as exports and factory output.
Such a tight labor market could temper pessimism about consumer spending and bolster the Bank of Japan’s (BoJ) argument that rising demand for workers will eventually spur inflation.
“Consumer spending looks weak now but the labor market continues to improve,” said Hiroshi Miyazaki, a senior economist at Mitsubishi UFJ Morgan Stanley Securities.
“As more people get work, this should support consumer spending in the future.”
The jobs-to-applicants ratio rose to 1.48 in April from 1.45 in the previous month, meaning 1.48 vacancies are available for each person seeking a job. Labor demand has been rising steadily due to a shortage of workers and increased activity in services and construction.
The last time labor demand was this strong was in February 1974, when the ratio was 1.53.
The jobless rate held steady at 2.8 percent in April, matching the lowest since June 1994.
The BoJ last month maintained its projection that price growth will reach its 2 percent target in fiscal 2018 on the assumption that a tight labor market will push up wages but not all economists are convinced.
Economists say some companies are opting to cut business hours, which makes it difficult for wages to rise.
“Some companies are scaling back the level of services they offer instead of going out and getting the workers they need,” said Hiroaki Muto, an economist at Tokai Tokyo Research Center Co.
“This is not likely to lead to higher take-home pay.”
Japanese household spending fell 1.4 percent in April from a year earlier in price-adjusted real terms, more than the median estimate for a 0.7 percent annual decline.
Excluding spending on autos and housing, household spending rose a seasonally-adjusted 3.5 percent in April from the previous month versus a 2.9 percent decline March, showing consumer spending is stronger than the headline figures, Miyazaki said.
Separate data showed retail sales rose 3.2 percent in April from a year earlier, more than the median estimate for a 2.3 percent increase but some economists say a small sample size may exaggerate the percentage change in this data.
Under a new policy framework adopted last year, the BoJ has pledged to guide short-term interest rates to minus 0.1 percent and cap the 10-year government bond yield around zero percent.
Consumer prices rose to 0.3 percent in April from a year ago, well below the BoJ’s 2 percent inflation target.
However, growing signs of strength in exports and factory output have presented the BoJ with a new communications challenge, pushing it to be clearer with markets on how it might dial back its stimulus — even though such action remains a long way off.

Source: Arab News

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

japan’s tight labor market offers hope for consumer spending japan’s tight labor market offers hope for consumer spending

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

japan’s tight labor market offers hope for consumer spending japan’s tight labor market offers hope for consumer spending

 



GMT 04:22 2017 Tuesday ,26 December

Israel in touch with '10 countries' over embassy moves

GMT 19:43 2017 Friday ,06 October

Employee safety top priority at Khalifa Port

GMT 16:19 2017 Friday ,28 April

ISIS Suspect Arrested in Western Germany

GMT 12:57 2017 Monday ,11 December

50 Students Poisoned by Contaminated Well Water

GMT 16:31 2017 Thursday ,10 August

Palestinians will discuss decline of aids

GMT 21:15 2017 Saturday ,04 March

Obama never ordered surveillance on any US citizen

GMT 10:00 2017 Thursday ,09 March

Russia ‘can be good friends with GCC’

GMT 02:13 2017 Wednesday ,22 February

Russian helicopter crash kills 19 in Siberia

GMT 13:23 2017 Tuesday ,05 December

Lebanon PM Hariri rescinds resignation

GMT 00:39 2017 Tuesday ,05 December

Gunmen kill cleric in Aden, southern Yemen

GMT 11:43 2016 Thursday ,24 November

Will learn from Euro exit

GMT 06:56 2017 Tuesday ,17 October

US ‘not taking sides’ between Iraqi forces, Kurds

GMT 19:59 2017 Thursday ,16 February

Syrian opposition's chief negotiator arrives in Astana

GMT 15:41 2017 Thursday ,29 June

US sets new visa rules for 6 mainly Muslim nations

GMT 19:31 2017 Saturday ,11 February

Earthquake Hits Taiwan

GMT 15:30 2017 Monday ,27 November

Syrian government will not join peace talks on Monday

GMT 16:20 2017 Tuesday ,31 October

La Rochelle survive red card to down Toulouse

GMT 20:33 2018 Tuesday ,16 January

Bahraini official receives UAE Ambassador

GMT 22:40 2018 Monday ,08 January

Bahrain to host first Baby Games
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube

Maintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2021 ©

Maintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2021 ©

arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday