Photo/Illutration Commuters at Tokyo’s Shinagawa Station in March 2023 (Asahi Shimbun file photo)

Japan’s ratio of active job openings to applicants in 2023 rose 0.03 percentage point from the previous year as the employment situation continues to improve following the recovery from the COVID-19 pandemic. 

This marked the second consecutive year in which the ratio has risen, according to labor ministry data released on Jan. 30. 

The latest ratio stood at 1.31, meaning 131 jobs are available per 100 job seekers.

The average monthly number of effective job openings in 2023 was 2.49 million, up 0.9 percent from a year earlier, as economic activities recovered.

Of the lodging and the food and beverage service industries, which were hit hard by the pandemic, the lodging industry has mostly rebounded. 

However, the pace of improvement is slowing.

The ratio in December on a seasonally adjusted basis was 1.27, down 0.01 percentage point from the previous month. This was the second consecutive month-on-month decline.

Following recovery from the pandemic, the ratio had risen to 1.36 in December 2022 but has been showing a downward trend since the start of 2023.

In December, 1.79 million people were actively seeking jobs, up 0.5 percent from the previous month, while there were 2.45 million job openings, up 0.2 percent.

This suggests that the number of job seekers is increasing at a faster pace than growth in job openings.

“More people are wanting to change jobs because of the tough working environment caused by staff shortages and there is also a growing interest in transitioning from non-regular to regular employment,” a ministry official said.

The number of new job openings, which indicate companies’ willingness to hire, fell by 3.3 percent compared to the same month the previous year.

By industry, the largest decrease was in manufacturing, which was down 10.5 percent.

The cost of raw materials has remained high due to rising prices, making it difficult for the industry to recruit new workers.

Following the manufacturing industry, new job openings in the living-related services and the entertainment industry fell by 8.4 percent, the information and communications industry decreased by 7.7 percent and the education and learning support industry declined by 6.4 percent.

However, the medical and welfare industry saw a 1.3 percent increase.

“We need to keep a close eye on the impact of high prices,” the ministry official said.

The unemployment rate in 2023 stood at 2.6 percent, unchanged from the previous year, according to data the internal affairs ministry released on the same day.

The rate for December was 2.4 percent on a seasonally adjusted basis, down 0.1 percentage point from the previous month.

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