#### Chapter 1. Trends and features of the labour economy Section 1. Trends of general economy, employment and unemployment

In the process of economic recovery after the financial crisis in the autumn of 2008, the Japanese economy suffered stagnation of production and declining of corporate profits, due to the Great East Japan Earthquake and the continued strengthening of Japanese yen; after that, however, it has begun to show a tendency of recovery once again, thanks to the reconstruction demand and various policy effects. In 2012, the manufacturing industry was affected by the slowdown of the world economy and rebound from the policy effects, leading to a decline of production, etc., but the recovery trend has come back. As for the employment situation in 2012, the ratio of active job openings to active job applicants was 0.80, up 0.15 from the last year, and the unemployment rate was 4.3% in 2012, down 0.3 from the last year; the employment situation is showing movements of improvement recently, although it still remains severe.

With respect to the workers' households, the income of householders' spouse reached the highest ever, owing to the decline of householders' income and labour participation of spouse's; it is necessary for us to further promote the improvement of environment where it is easier for job seekers to find the jobs they wish for.

Also, 2012 was the year when the baby boomer generation (born 1947 to 1949) reached their 65 $ ^{th} $ for the first time. Due to the Partial Amendment to Law on Stabilization of Employment of Elderly Persons (hereinafter referred to as the "Elderly Persons Employment Stabilization Law"), the employment of persons aged 60 to 64 tends to increase by 2010, compared to 2005. Although there may be other factors including economic trends, the reduction of labour force is alleviated in 2012 as well, due to the increase of labour force participation ratio of the persons aged 65 to 69. It is important for us to promote the policy measures for improvement of employment environment, so that elderly people can continue their work according to their willingness and abilities.

As for the employment environment in the area affected by the Great East Japan Earthquake, the ratio of active job openings to active job applicants, etc. were improved thanks to such factors as the reconstruction demand, and fulfillment of job openings is an important issue. Shortage of construction workers still remains a problem in the coastal areas, and it is also important to eliminate the labour mismatch in the marine product processing industry. In line with the reconstruction of the whole affected area, we need to improve the factors preventing employment and to support fulfillment of job openings and smooth hiring, through detailed assistance at Hello Works.

## (The employment situation is showing movements of improvement recently, although it still remains severe)

Although the Japanese economy was affected by the slowdown of the world economy in 2012, the economic trend is picking up at a moderate pace in 2013. With this situation in mind, when looking at the transition of the unemployment rate (seasonally adjusted) and the ratio of job openings to job applicants (seasonally adjusted) under Figure 1, we can see that the unemployment rate increased to 5.4% in the period from July to September 2009, but is showing the tendency of decline in line with the recovery of the economic trend. In the first half of 2011, the rate temporarily ceased to improve partly due to the Great East Japan Earthquake, but declined to 4.2% in the period from October to December 2012 and remained at 4.2% in the period from January to March 2013.

The ratio of new job openings to new job applicants declined to 0.77, the lowest ever recorded, in the period from April to June 2009; however, the ratio increased to 1.08 in the period from July to September 2011, exceeding 1 for the first time in 11 quarters, 1.33 in the period from October to December 2012 and 1.35 in the period from January to March 2013. Similarly, the ratio of active job openings to active job applicants declined to 0.43, the lowest ever recorded, in the period from July to September 2009; however, thereafter the ratio increased to 0.82 in the period from October to December 2012 and 0.85 in the period from January to March 2013, showing a tendency of recovery.

## (Income of householders' spouses increased thanks to an increase of working hours of wives)

In 2012, the monthly income of the wives of workers' households was 59,177 yen, up 11.5% compared to the last year, which was the highest ever by amount. Looking at the employment form of the household's spouse, part-time workers accounted for the largest portion (5.47 million persons in 2012; 46.8% of all employees excluding executives) among others, followed by regular employees (4.36 million persons in 2012; 37.3%), both of these employment forms showing a tendency of increase. Figure 2 shows the average weekly working hours of wives from the households whose husbands are employees excluding executives; the average tends to increase if unemployed persons and non-labour force are included, but largely remain at the same level if unemployed persons and the non-labour force are excluded from all wives.