Japan could see new hirings slow and job losses increase, particularly among firms in the service sector struggling to cope with the intensifying pain of the coronavirus crisis, an analysis of survey data by a private think-tank showed.
Dai-ichi Life Research Institute conducted the analysis on the government’s confidence survey for last month, involving taxi drivers, hotel and restaurant staff, who are known as “economy watchers.”
The analysis, using a technic known as “text mining,” showed that the word “job” was frequently used in combination with the word “adjustment.”
Photo: Bloomberg
The combination of the terms “hiring activity” and “stagnation” also appeared many times in the survey.
Both these combinations did not show up in the government’s February survey, a sign that the coronavirus might be forcing an increasing number of retailers to consider job cuts, Dai-ichi Life Research said in a report.
Words like “subsidies” and “consulting for [government] help” were also used in tandem with the term “jobs” as frequently as when the 2008 collapse of Lehman Brothers triggered a global financial crisis, the institute said.
“The pandemic may hurt manufacturers, but for this crisis, there’s a high chance non-manufacturers could lead the cycle where worsening business sentiment leads to fewer jobs,” Dai-ichi Life Research economist Takuya Hoshino said.
The economy watchers survey, released last week, showed that service sector sentiment hit a record low last month, as the coronavirus crisis prompted travel bans and hurt consumption in a major shock to the economy.
Japan’s jobs data for last month is to be released on April 28. The nation is on the cusp of a recession, as the outbreak adds to woes besetting an already fragile recovery.
The government last week declared a state of emergency in major population centers to combat the virus, urging citizens to stay at home, some facilities to shut down and restaurants to close early.
Movement of people around Tokyo Station fell 85.8 percent on Sunday from levels before the government’s state of emergency announcement on Tuesday last week, private big data firm Agoop said.
The number of coronavirus cases in Japan is at least 7,400, with 137 deaths, public broadcaster NHK said.
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