Cautious Japanese companies laid off more workers and hit the brakes on production last month, sending factory output down for the first time in a year.
Industrial production in the world’s second-biggest economy retreated 0.9 percent from January, following 11 consecutive months of gains, the government said yesterday. The result missed Kyodo News agency’s average market forecast of a 0.4 percent decline.
A separate report showed Japan’s unemployment rate was unchanged at 4.9 percent last month. The number of jobless rose 8.4 percent from a year earlier, however, to 3.24 million, with 1.1 million saying they were laid off. The number of people with employment fell 1.3 percent to 61.85 million.
Last month’s output lull is expected to be temporary. The Lunar New Year holidays during the month lowered demand across Asia, and a surprisingly robust 2.7 percent jump in January pointed toward an inevitable downturn in the following month.
The government predicts industrial production will climb 1.4 percent this month as strengthening export demand in key markets such as China and the US underpins the country’s economic recovery.
Still, the latest numbers offer a less than inspiring picture of Japan’s economic health. While production overall is still trending higher, economists question whether improvements can be sustained and translate into stronger job and wage growth.
“The pace of improvement in overseas demand may not be sustainable, and we note that firms are cautious in their behavior,” Goldman Sachs economist Chiwoong Lee said in a note to clients. “These are not fertile conditions for a strong labor market revival.”
The ratio of job offers to job seekers stood at a seasonally adjusted 0.47 last month, up from 0.46 last month, a labor ministry report also showed yesterday. That means there were 47 positions available for every 100 job seekers.
MORE VISITORS: The Tourism Administration said that it is seeing positive prospects in its efforts to expand the tourism market in North America and Europe Taiwan has been ranked as the cheapest place in the world to travel to this year, based on a list recommended by NerdWallet. The San Francisco-based personal finance company said that Taiwan topped the list of 16 nations it chose for budget travelers because US tourists do not need visas and travelers can easily have a good meal for less than US$10. A bus ride in Taipei costs just under US$0.50, while subway rides start at US$0.60, the firm said, adding that public transportation in Taiwan is easy to navigate. The firm also called Taiwan a “food lover’s paradise,” citing inexpensive breakfast stalls
TRADE: A mandatory declaration of origin for manufactured goods bound for the US is to take effect on May 7 to block China from exploiting Taiwan’s trade channels All products manufactured in Taiwan and exported to the US must include a signed declaration of origin starting on May 7, the Bureau of Foreign Trade announced yesterday. US President Donald Trump on April 2 imposed a 32 percent tariff on imports from Taiwan, but one week later announced a 90-day pause on its implementation. However, a universal 10 percent tariff was immediately applied to most imports from around the world. On April 12, the Trump administration further exempted computers, smartphones and semiconductors from the new tariffs. In response, President William Lai’s (賴清德) administration has introduced a series of countermeasures to support affected
CROSS-STRAIT: The vast majority of Taiwanese support maintaining the ‘status quo,’ while concern is rising about Beijing’s influence operations More than eight out of 10 Taiwanese reject Beijing’s “one country, two systems” framework for cross-strait relations, according to a survey released by the Mainland Affairs Council (MAC) on Thursday. The MAC’s latest quarterly survey found that 84.4 percent of respondents opposed Beijing’s “one country, two systems” formula for handling cross-strait relations — a figure consistent with past polling. Over the past three years, opposition to the framework has remained high, ranging from a low of 83.6 percent in April 2023 to a peak of 89.6 percent in April last year. In the most recent poll, 82.5 percent also rejected China’s
PLUGGING HOLES: The amendments would bring the legislation in line with systems found in other countries such as Japan and the US, Legislator Chen Kuan-ting said Democratic Progressive Party (DPP) Legislator Chen Kuan-ting (陳冠廷) has proposed amending national security legislation amid a spate of espionage cases. Potential gaps in security vetting procedures for personnel with access to sensitive information prompted him to propose the amendments, which would introduce changes to Article 14 of the Classified National Security Information Protection Act (國家機密保護法), Chen said yesterday. The proposal, which aims to enhance interagency vetting procedures and reduce the risk of classified information leaks, would establish a comprehensive security clearance system in Taiwan, he said. The amendment would require character and loyalty checks for civil servants and intelligence personnel prior to
RSS