— Japan May SA Jobs -240,000 M/M (-0.4%) Vs Apr -280,000
— Japan May SA Unemployed +10,000 M/M (+0.3%) Vs Apr +80,000
— Japan May NSA Jobs -470,000 Y/Y Vs Apr -530,000, 28th Y/Y Drop In Row
— Japan May NSA Unemployed Flat Y/Y Vs Apr +100,000
— Japan May Job Offers-To-Seekers Ratio 0.50 Vs Apr 0.48

TOKYO (MNI) – Japan’s unemployment rate rose to 5.2% in May from
5.1% in April as the number of the employed dropped from the previous
month, data from the Ministry of Internal Affairs and Communications
showed Tuesday.

The seasonally adjusted unemployment rate for May was slightly
higher than the consensus call for a 5.1% reading.

The 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 May, the number of the unemployed rose by a seasonally adjusted
10,000 from the previous month, or 0.3%, to 3.40 million, compared with
+80,000 in April.

The number of payroll jobs fell by a seasonally adjusted 240,000
month-on-month, or 0.4%, to 62.21 million, after falling 280,000 m/m in
April.

On an unadjusted basis, the number of employed people posted the
28th straight year-on-year drop in May, down by 470,000 (-0.7%) y/y to
62.95 million. The pace of decline decelerated from the drop of 530,000
(-0.8%) in April.

The unadjusted number of jobless workers was flat from a year
earlier at 3.47 million in May, but down from 3.56 million in April.

Job losses remained largely in manufacturing and construction, but
the pace of decline in the manufacturing decelerated from the previous
month but the pace of decline in the construction accelerated on month.

Also, job losses in education, learning support, wholesale and
retail trade, scientific research, professional and technical services,
living-related and personal services and amusement services increased.

By contrast, information and communications, and medical, health
care and welfare 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
has remained severe, but the degree of severity has eased somewhat.

Other details of the report follow:

The number of those who lost their jobs and were looking for work:
May -70,000 y/y at 1.03 million vs. April -70,000.

The number of people who quit their job voluntarily to look for
other openings: May +10,000 y/y at 1.02 million vs. April -10,000.

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 0.50 in April, up from 0.48 in April. That
means there were only 50 job offers for every 100 people looking for
work.

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

[TOPICS: M$J$$$,M$A$$$,MAJDS$,MT$$$$]