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Japan Consumption & Employment ×

Save Japan Retail Sales

Ministry of Economy, Trade and Industry releases monthly an important indicator for private consumption: ratail sales. Consumption accounts for 60% of Japanese GDP, so retail sales are the main sources of the country's GDP.

Since the 90s, Japan went through "a lost decade" after the asset bubble burst. Companies and households deleveraged after their assets depreciated rapidly. Private consumption thus decreased. Decreasing consumption led the economy into a recession, where deflation occurred and income declined. The private sector paid back debt even faster and balance sheet shrank.

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Latest Stats
  • Japan Retail Sales (L)
    2022-03
    13,628.00b
  • Japan Retail Sales (YoY, R)
    2022-03
    0.90%
Source
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Save Retail Sales Item (YoY)

Among retail sales, top four retailers are food and beverages (32%), others (16%), motor vehicles (12%) and general merchandise (9%). Food and beverages are non-durable goods and have less sharp fluctuations. Motor vehicles are durable goods, whose sales are easily affected by overall economic conditions. General merch include sales of wholesalers and department stores, whose sales are steadier than sales of motor vehicles but less stable than sales of food and beverages.

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  • General merchandise
    2022-03
    1.80%
  • Fabrics apparel and accessories
    2022-03
    -0.60%
  • Food and beverages
    2022-03
    0.00%
  • Motor vehicles
    2022-03
    -6.60%
  • Machinery and equipment
    2022-03
    -3.40%
  • Fuel
    2022-03
    15.20%
  • Medicine and toiletry Stores
    2022-03
    4.10%
  • Others
    2022-03
    1.40%
  • Nonstore retailers
    2022-03
    2.70%
Source
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Save Japan Consumer Confidence Index

Cabinet Office surveys 8400 households every month on their economic outlook for the future 6 months.

The survey has 4 aspects, of which each has various weights:
1. Overall livelihood
2. Income growth
3. Employment
4. Willingness to buy durable goods

The survey subjects can rate each aspect with "improve", "improve slightly", "no change", "worsen", and "worsen slightly". If consumer confidence comes out greater than 50, it means consumers are optimistic about future economic conditions.

Since the 90s, Japan went through "a lost decade", during which the government lowered interest rates to zero, issued full guarantee for deposits, and implemented financial stimulus program and QE programs. Consumer confidence finally rebounded in 2003. After going through financial crisis in 2008, earthquakes and tsunami in 2011, the re-elected prime minister Abe and its administration announced multiple reformative policies and negative interest rates since 2015. Although conumsr confidence has risen back up but it has been under 50 for a very, very long time.

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  • Japan Consumer Confidence Index
    2022-04
    33.00
Source
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Save Japan Average Cash Earnings (YoY)

Ministry of Health, Labour and Welfare (MHLW) releases monthly average cash earnings. Cash earnings are the amount before deducting income tax, social insurance premium, trade union dues or purchase price, etc. It includes contractual earnings and special cash earnings. Contractual earnings are the amount according to the employer's contract and the laws. Contractual earnings include scheduled cash earnings and non-scheduled cash earnings (overtime pay). Special cash earnings are earnings paid for temporary or unforeseen reasons not based on any previous agreement, contract, or rule, including summer and year-end bonuses.

Cash earnings YoY has been dropping significantly since 2019, mainly because earnings in financial insurance, real estate rentals, and compound services are declining. Special earnings in most of the sectors are declining, too.

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Latest Stats
  • Japan Average Cash Earnings (L)
    2022-03
    286,567.00
  • Japan Average Cash Earnings (YoY, R)
    2022-03
    1.20%
Source
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Save Unemployment Rate vs. Jobs/Applicants Ratio

Ministry of Health, Labour and Welfare (MHLW) releases monthly jobs/applicants ratio and unemployment rate. Jobs/applicants ratio is job openings divided by applicants. The ratio represents the average number of job openings each applicant can get. Unemployment rate is the number of unemployed persons divided by the number of labor force.

Unemployment rate first reached record-high in the 90s when the asset bubble burst, and the second record-high was in 2008 during the financial crisis. But from 2009 on, unemployment rate went down and jobs/applicants ratio went up. There are fewer applicants and more job openings in the labor market every year. It shows that although corporate profits are improving, there's a lack of labor force.

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  • Japan Unemployment rate (SA, L)
    2022-03
    2.60%
  • Japan Jobs/Applicants Ratio (SA, R)
    2022-03
    1.22
Source
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Save Japan Labour Force Participation Rate

Ministry of Health, Labour and Welfare (MHLW) releases monthly participation rate, persons over 15 years old are considered part of the labor force, whether employed or unemployed.

The number of people between 15 and 64 years old has been declining since 1993. The number of people older than 65 exceeded that of under 15 in 1997. Japanese participation rate has been decreasing because of an aging population. 2011 onward, the total number of people older than 15 is declining. The government began encouraging women and elders to work, and it successfully brought participation rate up. The number of female and elder workers surpassed 50% of total workers for the first time in 2015.

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Latest Stats
  • Japan Labour Force Participation Rate (L)
    2022-03
    62.10%
  • Japan Labour Force Participation Rate (YoY, R)
    2022-03
    62.10%
Source
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Save Japan Real Consumption Activity Index

CAI is compiled by using sales of durable goods, non-durable goods and services and other statistics from the supply end. CAI tracks changes in household consumption. CAI uses a similar statistical method to the one private consumption uses, plus that 50% of CAI are "services". So its changes are more accurate than sales data.

Base period=2011
Benchmark=100

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Latest Stats
  • Japan Real Consumption Activity Index (L)
    2022-03
    90.87
  • Japan Real Consumption Activity Index (YoY, R)
    2022-03
    -2.04%
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Save Japan Real Consumption Activity Index Component (YoY)

Three components of CAI:
Durable goods (10%),
Non-durable goods (40%),
Services (50%)

People buy durable goods when they are optimistic about the future.

Base period=2011
Benchmark=100

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Latest Stats
  • Japan Real Consumption Activity Index: Durable Goods (YoY)
    2022-03
    -9.51%
  • Japan Real Consumption Activity Index: Non-durable Goods (YoY)
    2022-03
    -1.77%
  • Japan Real Consumption Activity Index: Service (YoY)
    2022-03
    -0.59%
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