Monday, June 29, 2009

Japan: 2.3 Applicants for EVERY Job Opening

Wonder why there is record deflation in Japan? Look no further than the job market to see why there is a HUGE lack of demand for goods. Bloomberg reports:

“The pressure to cut jobs is strong,” Jun Saito, chief economist at the Cabinet Office, said last week. Weak global demand means exports may not be strong enough to make up for the deteriorating job market at home, he said in an interview.

The ratio of positions available to each applicant dropped to 0.44, the lowest since the survey began in 1963, the Labor Ministry said. Data yesterday showed retail sales dropped 2.8 percent in May from a year earlier, the ninth monthly decline.

“The job-to-applicant ratio was really eye catching -- the data was horrible,” said Mari Iwashita, chief market economist at Daiwa Securities SMBC Co. in Tokyo. “The jump in household consumption is only a frontloading of spending.”

Think that 2.3 number is scary? Well, the U.S. currently has 5 applicants for EVERY job opening.

Source: Stat.GO.JP