Jobless rate improves, CPI down

The seasonally adjusted unemployment rate dropped for the third consecutive month to 5.1 percent in October, but government officials remained cautious over the labor situation.

The jobless rate improved by 0.2 percentage point from September, according to internal affairs ministry statistics released Friday.

The ratio of job offers to job seekers in October was 0.44, an improvement of 0.01 point from the previous month, according to labor ministry figures released the same day.

The ratio means there were 44 jobs available for every 100 job seekers. The improvement represented the second consecutive month of recovery.

Although the figures suggest that the slide in the labor situation, which had worsened since autumn last year, has been coming to an end, many officials said problems remain.

"While the figures have slightly improved, the situation remains harsh," Health, Labor and Welfare Minister Akira Nagatsuma told a news conference.

The jobless rate for men was 5.3 percent in October, down 0.3 point from the previous month, while the rate was 4.8 percent for women, a decrease of 0.1 point.

The total number of unemployed people was 3.44 million, an increase of 890,000 from the same month last year. The number of people who lost jobs due to company reasons, such as bankruptcies or corporate restructuring, totaled 1.16 million, up 550,000 from the same month last year.

An additional 1.03 million quit their jobs for personal reasons, up 60,000 from October 2008.

The number of people with jobs was 62.71 million, down 1.17 million from the same month last year. It was also a sharper drop than the previous month.

The ratio of new job offers to job seekers, a key indicator for the economic outlook, stood at 0.78 for October, down 0.01 point from the previous month and the first decline in two months.

The ratio of job offers for full-time positions was 0.27, down 0.25 point from the same month last year, underscoring the tough times for those seeking stable work.

The government's recent declaration that Japan has entered a state of deflation for the first time in more than three years could also have a negative impact on the job market.

In fact, the consumer price index for October, excluding perishables, was 100.1 against the base of 100 for 2005, down 2.2 percent from the same month in 2008, according to the internal affairs ministry.

It was the eighth consecutive month of decline, although it was the second straight month for the margin of decline to narrow.

On a year-on-year basis, the decline in September was 2.3 percent.

The aftershocks from the surge in crude oil prices last summer appear to be settling down, leading to a slower decline in prices. But a larger concern now are the fierce price wars being waged among retailers to get consumers to spend.

The index excluding energy-related prices and food prices, both of which are subject to fluctuations, stood at 98.6, down a record 1.1 percent from the same month last year.

That was the 10th consecutive month of decline.

Foods prices, excluding perishables, shed 1.1 percent, representing the third month in a row of shrinkage.(IHT/Asahi: November 28,2009)