Japan’s labor 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% in March from 2.4% in the previous month, the internal affairs ministry reported 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 labor market will keep upward pressure on wages as companies try to boost pay to hire and retain workers. March saw major companies and their labor 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.
