The labor market showed signs of recovery after all coronavirus restrictions were lifted in late March. However, household spending fell for a second straight month of decline, due to the impact of higher food and energy prices.

Labour Force Survey Monthly Results¹

(1) Employment

The number of employed persons in April 2022 was 67.27 million, an increase of 24,000 over the same month the previous year. By gender, this included 36.98 million men, down 60,000 from the previous year, and 30.29 million women, up 300,000.

(2) Unemployment

The number of unemployed persons in April 2022 was 1.88 million, a decrease of 230,000 from the same month in the previous year, for the tenth straight monthly decline. The seasonally adjusted unemployment rate in April was 2.5%, down 0.1% from the previous month. The unemployment rate for men was 2.8%, up 0.1% over the previous month and 2.2% for women, down 0.2% from the previous month.

(3) Job Availability

Japan’s job availability in April stood at 1.23, up 0.01 over the previous month. This figure means there were 123 jobs available for every 100 jobseekers. It was the highest ratio since 1.31 in April 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 0.97, up 0.03 over the previous month. The ratio of new job offers to applicants, a leading indicator for the labour market, was 2.19, up 0.03 over the previous month.

Industrial Production ²

Industrial output in April decreased by 1.3% from the previous month.
While production, inventories, and inventory ratio all decreased, shipments remained flat.
The industries that mainly contributed to the decrease were as follows: (1) electronic parts and devices; (2) production machinery; and (3) motor vehicles, in that order.
According to the Survey of Production Forecasts in Manufacturing, production was expected to increase by 5.8% in May and by 8.9% in June.

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 April was 304,510 yen, down 1.2% in nominal terms and down 1.7% in real terms from the previous year, for the second straight month of decline due to higher food and energy prices that have undermined consumer confidence. By component, spending on fuel and utilities expanded 18.6% from a year earlier, reflecting steep rises in energy prices.

(2) Income and Expenditures for Workers’ Households

Average monthly income per household stood at 539,738 yen, down 0.6% in nominal terms and down 3.5% in real terms over the previous year. The average level of consumption expenditure was 344,126 yen per month, up 1.6% in nominal terms and down 1.4% in real terms year-on-year.

Consumer Prices ⁴

The consumer price index (CPI) in April was 101.5 (2020 = 100), up 2.5% over the previous year and up 0.4% 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 first rise since July 2020. Energy prices surged 19.1 percent, with gasoline, kerosene, city gas, and electricity bills all marking double-digit gains.

1. Source: Labour Force Survey Monthly Results (Statistics Bureau of Japan)
   (https://www.stat.go.jp/english/data/roudou/results/month/index.html)
2. Source: Indices of Industrial Production (Ministry of Economy, Trade and Industry)
   (https://www.meti.go.jp/english/statistics/tyo/iip/index.html)
3. Source: Summary of the Latest Month on Family Income and Expenditure Survey (Statistics Bureau of Japan)
   (https://www.stat.go.jp/english/data/kakei/156.html)
4. Source: Consumer Price Index (Statistics Bureau of Japan)
   (https://www.stat.go.jp/english/data/cpi/1581-z.html)