In May, the labor market has improved notably Japan, one of the indicators peaked at almost 22 years old, suggesting that attempts to Prime Minister Shinzo Abe to bring the economy on a path of steady growth have been successful.
Since Japanese employers continue to create new jobs, the ratio of jobs and applicants for them in May reached 1.09, which means that 100 candidates have to 109 jobs, is the highest since June 1992. Data show that the labor market is decreasing in many sectors economy, from the construction sector and auto manufacturing to education.
Also in May, the unemployment rate fell to 3.5% from 3.6% a month earlier.
Employment figures also fit into the script BOJ. Declining labor market will contribute to higher inflationary pressure to the target level, which is 2%.