— Japan Aug SA Jobs -10,000 M/M (0.0%) Vs July +210,000
— Japan Aug SA Unemployed -70,000 M/M (-2.1%) Vs July -60,000
— Japan Aug NSA Jobs -180,000 Y/Y, 1st Drop In 2 Mo; July +10,000
— Japan Aug NSA Unemployed -240,000 Y/Y; 3rd Drop In Row; July -280,000
— Japan Aug Job Offers-To-Seekers Ratio 0.54 Vs July 0.53

TOKYO (MNI) – Japan’s unemployment rate fell to a four-month low of
5.1% in August from 5.2% in July, as the number of unemployed showed the
second straight monthly drop, data from the Ministry of Internal Affairs
and Communications showed Friday.

A gradual improvement in the labor market was also confirmed in
year-on-year changes but the number of employed people fell 180,000 from
August last year, posting the first y/y drop in two months after marking
the first y/y rise in 30 months in July (+10,000).

The seasonally adjusted unemployment rate for August matched
analysts’ median forecast as well as April’s rate, drifting down from
the recent high of 5.3% in June.

The August jobless rate was below the record high of 5.6% hit in
July 2009, but still well above the 4.2% rate seen at the start of 2009.

In August, the number of unemployed fell by a seasonally adjusted
70,000 from the previous month, or 2.1%, to 3.34 million, compared with
a drop of 60,000 in July.

It was the second consecutive m/m drop.

The number of payroll jobs was little changed, down by a seasonally
adjusted 10,000 month-on-month, or 0.0%, at 62.45 million, showing the
first m/m drop in three months, after rising 210,000 m/m in July.

On an unadjusted basis, the number of employed people fell by
180,000 to 62.78 million in August, marking the first year-on-year drop
in two months. Employment rose 10,000 in July, the first year-on-year
gain in 30 months.

The unadjusted number of jobless workers was down by 240,000 in
August from a year earlier at 3.37 million, marking the third
consecutive year-on-year decline, after falling 280,000 in July.

Job losses remained largely in agriculture and forestry,
construction, manufacturing, wholesale and retail trade as well as
personal and amusement services.

Meanwhile, the medical, health care and welfare, education,
learning support as well as hotels and restaurant sectors 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
remains severe but that the degree of severity has eased somewhat.

The BOJ’s September Tankan survey showed that sentiment among
Japan’s major manufacturers improved for the sixth straight quarter but
also indicated that business managers are turning more cautious in their
outlook for the coming months due to the yen’s rise and increased
uncertainty over the global economy.

The BOJ has said that the pace of Japan’s economic recovery is
likely to slow temporarily.

Other details of the report follow:

The number of workers who retired or whose contracts expired:
August -60,000 y/y at 340,000 vs. July -50,000.

The number of those who lost their jobs and were looking for work:
August -190,000 y/y at 1.05 million vs. July -190,000.

The number of people who quit their job voluntarily to look for
other openings: August -10,000 y/y at 1.10 million vs. July -30,000.

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 0.54 in August, up from 0.53 in July. That
means there were only 54 job offers for every 100 people looking for
work.

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

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