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Japan unemployment rate indicates nation is coping [ClearOnMoney]
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Japan unemployment rate indicates nation is coping

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Commentary

Japan unemployment rate indicates nation is coping

10 Feb 2012 by Jim Fickett.

It is very likely that Japan will face a sovereign debt crisis. Hopefully there will be some warning visible in economic indicators; for this reason I watch a few key indicators on a regular basis. Here is the unemployment rate through December:

The documentation on methodology is not entirely clear, but I believe those displaced by the earthquake last year are counted as outside the workforce, and so do not appear in the unemployment rate. Even so, this looks surprisingly good for a nation in which electrical power capacity still remains far below normal.

As with other indicators, the unemployment rate suggests that for now Japan is plugging along, without signs of undue stress (see also Japan's manufacturing was fairly stable in the second half of 2011).