Business & Economy

Japan’s industrial output drops 8.4%, unemployment rate climbs 2.9% in May

Tokyo, June 30 (efe-epa).- Japan’s industrial production dropped 8.4 percent in May as compared to a month earlier while the unemployment rate rose to 2.9 percent from 2.6 percent recorded in the previous month, according to the data released by the government on Tuesday.

The industrial output stood at its lowest figures since the comparable data became available in 2013.

As compared to May 2019 figures, the output dropped 25.9 percent, according to the Ministry of Economy, Trade and Industry.

The ministry further added that the industrial production was plummeting rapidly.

The May decline was recorded following the 9.1 percent fall observed the month before when Japan decreed state of emergency – which was in place until May 25 – amid the novel coronavirus outbreak.

The measure continued its effect of supply chains which in majority of the cases were interrupted, thus reducing the domestic and foreign demand.

The industries which majorly affected the industrial output figures in May, includes production of motorized vehicles, machine, iron, steel and non-ferrous metals.

According to the data indicated in the survey carried out by the ministry which includes domestic companies, it is expected that the industrial out of Japan is set to climb 5.7 percent in June – as compared to the anticipated 3.9 percent in the month before – and 9.2 percent in July.

Industrial production measures the productivity of Japanese factories, considered a key measure of the Asian country’s economic health, as it relies mainly on the manufacturing sector.

In May, the unemployment rate drop was observed amid the health emergency alert and restrictions enforced in Japan due to COVID-19 outbreak.

The number of unemployed individuals in the third largest economy of the world stood at 1.98 million, indicating an increase of 330,000 persons or 20 percent of the total in the year-on-year data, according to the Ministry of Health, Labor and Welfare.

The number of employed individuals lowered to 66.56 million in May, indicating a drop of 760,000 people or 1.3 percent reduction in the yea-on-year figures.

Moreover, the number of available jobs for every 100 individuals in search of a job stood at 120, indicating that the figures dropped from April’s 132 and thus recording the lowest numbers since July 2015. EFE-EPA

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