Optimism boosted by June economic recovery

8 years ago by in Featured, Japan

The unemployment rate decreased in June to 4.3 percent, from 4.4 percent the previous month, while household spending increased slightly, in a sign of optimism for Japan’s recovery efforts.

“Japan’s job market continued to improve in line with a gradual recovery of the nation’s entire economy,” said Naoko Ogata, a senior economist at Japan Research Institute.

According to analysts, part of the recovery is due to more jobs created in north-eastern Japan, where reconstruction efforts go at full speed after last year’s natural disasters.

Average household spending was of Y269,810 ($3,450) in June, up 1.6 percent from a year earlier.

“All in all, the Japanese economy is still on course to recovery, led by improvement in domestic consumption,” Ogata said. “But an end to auto incentives later this year may dampen consumers’ sentiment,” she added.

The Japanese industry is also facing risks after the authorities decided to shut down most of the country’s nuclear reactors.