Economic and Labour Situation in Japan July 2022
2022 Spring Struggle Final Tally
On July 5 RENGO (Japanese Trade Union Confederation) carried out its final tally of wage hike settlements reached in the 2022 Spring Struggle for a Better Life. RENGO’s survey revealed that 4,944 unions that had demanded average wage hikes for members and engaged in labour–management negotiations had reached settlements by that time.
The average wage hike in these settlements (including the regular wage hike) was 6,004 yen, the equivalent of 2.07% of the average wage before the hike; this level was 824 yen, and 0.29 percentage points, more than at the same stage last year. Of unions with fewer than 300 members, the average wage hike was 4,843 yen, up 1.96%; this level was 555 yen, and 0.23 percentage points, more than at the same stage last year. Of unions with fewer than 100 members, the average wage hike was 4,387 yen, up 1.89%; this level was 544 yen, and 0.24 percentage points, more than at the same stage last year. Of unions with more than 300 members, the average wage hike was 6,183 yen, up 2.09%; this level was 862 yen, and 0.30 percentage points, more than at the same stage last year. Of unions with more than 1,000 members, the average wage hike was 6,396 yen, up 2.12%; this level was 957 yen, and 0.34 percentage points, more than at the same stage last year.
Labour Force Survey Monthly Results1
The number of employed persons in May 2022 was 67.30 million, an increase of 17,000 over the same month the previous year. By gender, this included 37.04 million men, down 80,000 from the previous year, and 30.25 million women, up 240,000.
The number of unemployed persons in May 2022 was 1.91 million, a decrease of 220,000 from the same month in the previous year, for the tenth straight monthly decline. The seasonally adjusted unemployment rate in May was 2.6%, up 0.1% over the previous month, marking the first increase in four months. The unemployment rate for men was 2.8%, unchanged from the previous month and 2.4% for women, up 0.2% over the previous month.
|Population aged fifteen and over||11,032||-70||-0.6|
|Not in labour force||4,102||-65||-1.6|
|Labour force participation rate (%)||62.7||0.5||–|
|Employment rate (%)||61.0||0.7||–|
|Unemployment rate, original series(%)||2.8||-0.3||–|
|Current month||Change from
|Unemployment rate, seasonally adjusted(%)||2.6||0.1|
(3) Job Availability
Japan’s job availability in May stood at 1.24, up 0.01 over the previous month, showing an improvement for the fifth straight month. This figure means there were 124 jobs available for every 100 jobseekers. It was the highest ratio since 1.31 in May 2020, when the Japanese government declared the COVID-19 state of emergency for the first time. The ratio of regular employee job offers to applicants was 0.98, up 0.01 over the previous month. The ratio of new job offers to applicants, a leading indicator for the labour market, was 2.27, up 0.08 over the previous month.
Industrial Production 2
Japan’s industrial output in May marked the steepest fall in two years, as the auto industry was hit by parts shortages due to a COVID-19 lockdown in Shanghai. Automobile output dropped 8.0 % from the previous month.
Industrial output in May decreased by 7.2% from the previous month.
While production, shipments and inventories decreased, inventory ratio increased.
The industries that mainly contributed to the decrease were as follows: (1) motor vehicles; (2) electrical machinery, and information and communication electronics equipment; and (3) production machinery, in that order.
According to the Survey of Production Forecasts in Manufacturing, production was expected to increase by 12.0% in June and by 2.5% in July.
|Seasonally adjusted index||Original index|
|Index||Change from previous month (%)||Index||Change from previous year (%)|
Family Income and Expenditure Survey 3
(1) Expenditure of Households of Two Persons or More
Average monthly consumption expenditure of households of two or more persons in May was 287,687 yen, up 2.4% in nominal terms but down 0.5% in real terms from the previous year, declining for the third straight month due to higher food and energy prices that have undermined consumer confidence. By component, spending on fuel and utilities expanded 15.0% in nominal terms from a year earlier, reflecting steep rises in energy prices.
(2) Income and Expenditures for Workers’ Households
Average monthly income per household stood at 489,745 yen, up 0.1% in nominal terms but down 2.7% in real terms from the previous year. The average level of consumption expenditure was 314,979 yen per month, down 0.9% in nominal terms and down 3.7% in real terms year-on-year.
Consumer Prices 4
The consumer price index (CPI) in May was 101.8 (2020 = 100), up 2.5% over the previous year and up 0.2% over the previous month, driven by higher commodity prices and a weak yen. Core inflation (CPI less food and energy) was up 0.8% over the previous year, marking the second straight month of increase. Energy prices surged 17.1 percent, with gasoline, kerosene, city gas, and electricity bills all marking double-digit gains.
|All items, less fresh food||101.6||2.1||0.1|
|All items, less fresh food and energy||100.1||0.8||0.1|
- Source: Labour Force Survey Monthly Results (Statistics Bureau of Japan)
- Source: Indices of Industrial Production (Ministry of Economy, Trade and Industry)
- Source: Summary of the Latest Month on Family Income and Expenditure Survey (Statistics Bureau of Japan)
- Source: Consumer Price Index (Statistics Bureau of Japan)