It is tempting to dismiss the significance of the surge in Japanese unemployment as a lagging indicator, but this would be a mistake. With nominal wages already falling outright, growing excess labour increases the threat of a downward spiral in wages and prices. What’s more, rising unemployment underlines the risk that a new DPJ government will rollback labour market reforms.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services