Japan Sees Over 40,000 Job Losses Due to 'COVID-19 Impact'... Increase Continues

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Jeong Hyunjin] According to reports from Asahi Shimbun and others on the 31st, the number of people who lost their jobs due to the impact of the novel coronavirus infection (COVID-19) in Japan has officially exceeded 40,000 according to government statistics.

Asahi cited data from Japan's Ministry of Health, Labour and Welfare, reporting that as of the 29th, the number of people who were dismissed or had their employment terminated due to COVID-19 was identified as 40,032. The number of job losses due to COVID-19 exceeded 10,000 on May 21, about four months after the first confirmed case was announced in Japan on January 16. Since June, the number has been rapidly increasing by 10,000 every four weeks.

By industry, as of the 22nd, the accommodation and manufacturing sectors, which were severely affected by COVID-19, had the highest numbers at 6,534 each, followed by the food service industry (5,416) and retail industry (3,869). By region, Tokyo, Osaka, and Hokkaido, where COVID-19 cases were concentrated, had the highest numbers.

Meanwhile, the effective job openings-to-applicants ratio (seasonally adjusted) in Japan's employment market last month recorded 1.11, down 0.09 points from the previous month, marking a decline for six consecutive months. The June effective job openings-to-applicants ratio was the lowest in 5 years and 8 months since October 2014. This ratio indicates how many job openings companies have per one job seeker; a higher ratio means greater demand for labor from companies.

The Ministry of Health, Labour and Welfare analyzed that the reason for the decline in the effective job openings-to-applicants ratio is that although economic activities resumed in earnest after the Japanese government's emergency declaration was lifted, the trend of decreasing new hires by companies continued. In fact, new hires by Japanese companies in June decreased by 18.3% compared to the same period last year. Japan's unemployment rate last month was 2.8%, down 0.1 percentage points from the previous month, showing a slight improvement for the first time in seven months.