Increase laid to voluntary resignations
The seasonally adjusted unemployment rate rose to 5.1 percent in October from 5.0 percent the previous month, growing worse for the first time in four months due largely to a rise in the number of people who quit their jobs of their own volition, the government said.
The Internal Affairs and Communications Ministry acknowledged Tuesday that the jobless rate remains at a high level but denied employment conditions are growing markedly worse.
The number of workers who voluntarily quit their jobs increased, apparently in search of other opportunities as more companies seek midcareer employees, the ministry said.
The result came amid growing concerns about economic prospects, given slower exports and falling industrial output. Data released by the Ministry of Economy, Trade and Industry showed production at factories and mines dropped 1.8 percent in October for the fifth straight monthly fall, on diminishing effects of the government's fiscal stimulus to boost private consumption.
The data added to the view that companies are inclined to cut their payroll costs while lowering output levels, which could weigh on consumer sentiment and household spending, experts said.
Akihiro Morishige, an economist at Mitsubishi Research Institute Inc., said future employment conditions depend largely on whether and how fast the country's exports and domestic business confidence can recover.
"Companies have remained skeptical about the business outlook. They are unlikely to boost employment and capital spending until they become sure the yen's strength has been restrained, and that emerging-market countries attain sustainable growth," Morishige said.
The recent hike in the yen against the dollar and other major currencies has hurt the earnings of Japanese exporters.
Average monthly household spending fell a real 0.4 percent in October from a year earlier to ¥287,433, the ministry said in a separate report. The result was largely affected by weaker consumer sentiment amid the recent price hike of tobacco and the end of a government subsidy program in September for the purchases of environmentally friendly vehicles.
The unemployment rate in the latest preliminary report was slightly higher than an average forecast of 5.0 percent among economists. It also compared with 5.0 percent in September, 5.1 percent in August, 5.2 percent in July and 5.3 percent in June.
The rate for men improved to 5.4 percent from 5.5 percent in September, while for women it rose to 4.6 percent from 4.3 percent, the ministry said. The number of jobless people stood at 3.34 million, down 100,000 from a year earlier.
The number of people who quit their jobs rose 50,000 to 1.08 million while that of people dismissed by their employers was down 150,000 to 1.01 million.
The medical and welfare sectors as well as the hotel and restaurant industries expanded their payrolls. Construction firms, on the other hand, are keeping a tight rein on hiring.
The Health, Labor and Welfare Ministry separately said job availability improved for the sixth straight month as the ratio of job offers to job seekers rose to 0.56 in October from 0.55 in September, which means 56 jobs were available for every 100 job seekers.
Separate data showed that overtime pay and other unscheduled wages rose 6.4 percent in October from a year before to an average of ¥18,391 at firms with at least five employees. The pace of growth significantly slowed from 10.1 percent in September, 10.9 percent in August and 12.4 percent in July.
Average monthly wages, meanwhile, gained 0.6 percent to ¥26,951.
The ministry also showed the number of nonregular workers who are expected to have lost their jobs since October 2008 by the end of this year came to 298,549 as of mid-November.
The tally for the 27-month period confirmed that since the global financial crisis started in September 2008, Japanese firms are increasingly dismissing nonregular workers.
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