The US labour market showed signs of a steady slowdown in October, with job openings increasing moderately and layoffs declining, according to the latest Job Openings and Labor Turnover Survey (JOLTS) report released by the Bureau of Labor Statistics on Tuesday. Job openings, a key indicator of labour demand, rose by 372,000 to 7.744 million at the end of October. However, the September figures were revised downward to 7.372 million from the initially reported 7.443 million. Economists polled by Reuters had anticipated 7.475 million vacancies. Labour Market Dynamics While job openings increased, hires dropped by 269,000 to 5.313 million, and layoffs fell by 169,000 to 1.633 million. These figures suggest a gradual cooling of the labour market rather than a sharp contraction. Hurricanes and strikes also impacted October’s labour market data. Rebuilding efforts in storm-affected regions and the resolution of strikes at Boeing and another aerospace company are expected to contribute to a ...
Shigeru Ishiba, Japan's incoming prime minister, emphasized the importance of boosting wages and revitalizing consumption to help the country fully emerge from deflation and economic stagnation. After winning the ruling Liberal Democratic Party's leadership race on Friday, Ishiba signaled that his administration would focus on sustained economic recovery.
Ishiba acknowledged that Japan's GDP has remained flat for two decades, with wage growth failing to keep pace with inflation. He stressed that increased consumption is vital for economic improvement, aligning with outgoing Prime Minister Fumio Kishida’s policies aimed at increasing household income through wage hikes.
Parliament is expected to confirm Ishiba as Japan's next prime minister on Tuesday, with a new cabinet formed the same day.
Ishiba's victory, seen as a departure from the aggressive Abenomics policies championed by deceased former premier Shinzo Abe, has been interpreted as a sign of a potential shift in monetary policy. Analysts predict that Ishiba’s leadership may give the Bank of Japan (BOJ) more flexibility in raising interest rates, as he is not strongly tied to past monetary stimulus policies.
Kazutaka Maeda, an economist at Meiji Yasuda Research Institute, noted that Ishiba’s win could lead to the BOJ hiking rates as early as December. Similarly, Takeshi Minami from Norinchukin Research Institute stated that Japan is likely moving away from Abenomics, making it easier for the BOJ to normalize monetary policy.
Ishiba is expected to compile a stimulus package aimed at curbing rising food and fuel prices, funded through a supplementary budget. Under BOJ Governor Kazuo Ueda, appointed by Kishida, the bank has already exited negative interest rates and may continue raising rates if inflation remains stable.
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