Japan's bright jobs data hide gloomier reality

Subject

Japan's labour market.

Significance

The number of people with jobs is near its all-time high. Employment has increased in year-on-year terms for 58 straight months. The 2.8% unemployment rate is the lowest in a quarter-century, and there are more than two new jobs for every applicant. However, Japan still has a labour surplus, because many employed people work only part-time.

Impacts

• Retail and other services in particular will face labour shortages.
• Employers will be forced to consider enhancing job offers with higher pay, longer hours and more benefits.
• By the end of 2018, higher wages will translate into higher prices as the labour pool shrinks.