Japan unemployment rate is soaring as the economy continues to tumble. The unemployment rate has reached a three-year high in August.
In July, the jobless rate rose to 3 percent from 2.9 in July as per the internal affairs ministry report.
The number of unemployed people increased from 490,000 to 2.06 million. For the first time, it has crossed the two million figures since May 2017.
The report further says that the job availability ration decreased to 1.04 from 1.08, down the eighth month straight reported Japan Times. This ratio indicates, there are 104 jobs available for every 100 job seekers.
However, the job losses are lesser than in other economies. Japan is facing a shortage of labor due to the greying population.
The jobless data shows that half a million job was lost in the manufacturing sector and a quarter of a million in hotel and restaurant as compared to the previous year.
However, the government’s spending to protect the jobs has ensured the damage is minimal. The companies are however not confident enough to hire more, but they are keeping jobs.
The recovery however largely depends on the trajectory of the pandemic.
The restaurant industry was hit hard as it lost 280,000 jobs and the manufacturing industry lost 520,000 jobs. With the resurgence of the virus in Europe and other key markets, the outlook does not look promising.
The number of people not in the labor force grew by 110,000, fifth consecutive rise month by month.
The Japan Times reported that out of 710,000 people among unemployed voluntarily left jobs. There were 590,000 people who were laid off and 530,000 were new job seekers.