### Section 4. Trends in regional employment and wages

How does the economic recovery including the improvement of the employment situation affect each region? The unemployment rate and ratio of active job openings to active job applicants are increasing in all regions. Looking at the employment conditions D.I. by regional block, it is insufficient in all regional blocks for all industries in the period from October to December 2013. This shows an increased shortage of workers throughout Japan. Three years after the Great East Japan Earthquake, in the affected three prefectures, the ratio of active job openings to active job applicants is much higher than the level before the earthquake and it has improved to the level exceeding the national average.

Wages increased in all regions and it is considered that the economy is generally recovering although there are some differences depending on the region because of the different industrial structure.

## (Employment situation has improved in a steady manner although it is still severe in some regions)

Let's look at the transition of the unemployment rate by regional block in Figure 18. The national average unemployment rate was 4.0% in 2013. Compared to 2006 when the national average unemployment rate was at the same level, it was lower than that in 2006 in Hokkaido, Tohoku, Kinki, Kyushu and Okinawa. The unemployment rate in all blocks had smaller difference from the national average and is declining throughout the nation in 2013, compared to that in 2006. The ratio of active job openings to active job applicants is also increasing in all regional blocks.

In 2013, the employment conditions D.I. by regional block turned insufficient in non-manufacturing industries. In the period from January to March 2014, the overcapacity has weakened and insufficiency started to exceed overcapacity in manufacturing industries in all regional blocks other than Tohoku. In the period from October to December 2013, insufficiency started to exceed overcapacity in all industries in all regional blocks, showing a rising staffing shortage throughout the nation.

## (Trends in three prefectures affected by the earthquake)

What is the current employment situation like in the affected areas after three years since the Great East Japan Earthquake? We shall look at the trends of job offerings and job applications. The number of job offers has steadily been increasing even after the considerable rise of reconstruction demand following the earthquake. On the other hand, the number of job applicants has fallen below the level before the Great East Japan Earthquake due to the restoration and reconstruction of offices, increased re-employment and declined population in the affected areas. Therefore, the ratio of active job openings to active job applicants largely exceeded the level before the earthquake and it has surpassed the national average. In response to the tighter situation in labour supply and demand, wages at job offer have changed. According to Figure 19, the average wage at job offer of all occupational posts in December 2013 increased compared to that in April 2011. In particular, the increase rate is higher in the construction field such as block fixing and construction machine operation workers, construction and mining workers, architectural engineers, civil engineers and surveyors.

## (Wages increased in many regions)

Total cash earnings for general workers increased by 0.8% from the previous year in 2013. What is the situation by region? According to Figure 20 that shows the year-on-year total cash earnings, it increased from the previous year in regions excluding Hokkaido and Kinki.