Employment Situation-Japan

Employment Situation - Japan - The analysis of current conditions and future outlook for the Japanese labor market. The Employment Situation report not only covers current figures regarding employment in Japan, but also forecasts spending and consumption patterns that may lead to higher wages, spending and inflationary pressures. The report releases five potential market-moving figures less than a month after the reporting period. In total these reports are used as an indicator for the overall Japanese economy.

Jobless Rate
The percentage of the labor force that is unemployed. A lower jobless rate translates into more income-earning workers and greater consumption. Such increased expenditure accelerates economic growth, but can also heighten inflationary pressures. On the other hand, a higher jobless rate tends to precede lower consumer spending and a contracting economy.
Relevance: Rarely affects markets

Job-to-Application Ratio
Compares the number of jobs advertised to the number of applications received. The ratio measures the ease or effort in finding employment in the Japanese labor market. A higher ratio reflects a higher number of positions per applicant, usually corresponding to economic expansion. A lower ratio reflects fewer jobs per applicant consequent to economic contraction.
Relevance: Rarely affects markets

Workers Spending
An estimate of the total monthly expenditure by households headed by wage-earning workers. Workers Spending is the most closely watched figure released in the Family Income and Expenditure Survey and is released at the same time as Japanese Jobless Rate. Workers Spending is closely correlated with business cycle trends and changes are indicative of growth or contraction of domestic demand. It is a significant contributor to overall consumer spending, and growth in the figure suggests an expanding economy and rising inflation. The headline figure is the monthly percentage change in Workers Spending.
Relevance: Tends to move markets on release

Household Spending
A survey of both wage-earning and non-working households, such as those classified as single-member, unemployed, or retired. The headline figure is the percentage change in average spending per household from the previous year. Increases in household spending are favorable for the Japanese economy because high consumer spending generally leads to higher levels of economic growth. Higher spending is also a sign of consumer optimism, as households confident in their future outlook will spend more. At the same time accelerated growth exerts inflationary pressure, which can lead to interest rate increases in the future.
Relevance: Tends to move markets on release

Personal Income
A measure of income received by Japanese households. The data is based off the Yearly Income and Savings Questionnaire and reported as the percent change from previous months. The figure excludes non traditional households in its calculation; for instance, students living alone or households which manage restaurants, hotels, or boarding houses are not surveyed. Consequently, traders often look to other measures, such as Labor Cash Earnings for a broader gauge of Japanese income.
Relevance: Rarely affects markets

Release schedule: 23:30 (GMT); one month after the reporting period
Revisions schedule: Little or no revisions
Source of report: Japanese Ministry of Health, Labour and Welfare ( Japan )
Web Address: http://www.mhlw.go.jp/english/index.html
Address of release: http://www.stat.go.jp/english/data

Jobless Rate: Labour Force Survey > Latest Monthly Results > Unemployment > Unemployment Rate
JA Ratio: (Only available in Japanese)  
Workers Spending: Family Income and Expenditure Survey > Total Households > (Latest Quarter) > (Table #) > Worker's Households > Expenditure  
House Spending: Family Income and Expenditure Survey > Total Households > (Latest Quarter) > (Table #) > All Households > Expenditure  
Personal Income: Family Income and Expenditure Survey > Total Households > (Latest Quarter ) (Table #) > Household Income

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