Japan June unemployment rate temporarily back to 3.4%

The number of job seekers that dropped out of the Japan's labour force increased in March and April. 

"The unemployment rate is expected to temporarily rise back to 3.4% in June", says Societe Generale.

In May, some of these job-seekers returned to the labour force, but they were absorbed by the increase in the employment number. In June, more job-seekers are expected to return to the labour force but they will not be able to be absorbed by the increase in the employment number in the short term. 

"This led to a technical improvement in the unemployment rate, but it probably does not reflect the real situation of the labour market. Therefore, the unemployment rate in June is likely to rise, at least temporarily", added Societe Generale.