Published Fri, May 2, 2025 · 08:39 AM
[TOKYO] Japan’s labour market remained largely tight in March, supporting momentum for wage hikes, while uncertainties over the global trade war continue to darken the outlook.
The jobless rate ticked up to 2.5 per cent in March from 2.4 per cent in the previous month, the Ministry of Internal Affairs reported on Friday. The job-to-applicant ratio rose to 1.26 from 1.24 in February, meaning there were 126 jobs offered for every 100 applicants, the Labor Ministry reported separately. Economists had forecast a reading of 1.25.
The tight labour market will keep upward pressure on wages as companies try to boost pay to hire and retain workers. March saw major companies and their labour unions agree on strong raises, supporting the central bank’s plan to keep unwinding its easy monetary settings with gradual interest-rate hikes toward a neutral level.
But rising uncertainties over the global trade war have clouded Japan’s growth outlook and the Bank of Japan’s roadmap.
On Thursday, the BOJ kept its policy settings unchanged and pushed back the timing for when it expects inflation to reach its target, citing the trade war as a risk factor. BLOOMBERG
Share with us your feedback on BT’s products and services
