Japan’s Unemployment Rate Will Stay Very Low, Says Sumitomo Mitsui’s Kichikawa

The video discusses Japan's economic challenges, focusing on the BOJ's 2% inflation target, the current state of the CPI, and the labor market. Despite some positive signs in Tokyo's CPI, achieving the target remains difficult due to moderate wage growth and potential downward pressure from reduced telecommunication costs. The unemployment rate is slightly higher than expected but remains low due to demographic factors and workstyle reforms. Industrial output and exports are struggling, with stabilization expected after inventory adjustments in key sectors like IT and capital goods.

What is one of the reasons Japan is struggling to reach its 2% inflation target?

• High telecommunication costs

• Rapid wage growth

• Moderate wage growth

• Increased consumer spending

What is the current jobless rate in Japan as mentioned in the video?

• 3.5%

• 3.0%

• 2.5%

• 2.0%

What factor is contributing to the tight labor market in Japan?

• Decreasing population

• Workstyle reforms

• Increased working hours

• High unemployment rate

What is causing the delay in stabilization of Japan's industrial output?

• Rapid technological advancements

• Government policy changes

• Inventory adjustments in key industries

• Increased demand for exports

When is Japan expected to see stabilization in its manufacturing sector?

• By the end of the year

• By mid-second quarter

• By the end of the first quarter

• By the start of the third quarter