Japan's unemployment rate remained unchanged at 3.2%, in line with economists' expectations, after having reached 3.1%, the lowest level in 11 years back in October 2015, data by the Ministry of Internal Affairs and Communications showed. Unemployment has declined steadily since reaching the all-time high of 5.6% in July 2009. Separate data from the Ministry of Health, Labour and Welfare shows that there were 134 jobs for every 100 people seeking work in April, a jump from the previous month's 130 and the best showing since November 1991. That suggests the level of job availability is still high, which analysts think could keep the unemployment rate low or push it lower over coming months. Still, an improved labour market has yet to translate into the wage growth needed to stimulate consumption or inflation.
Moreover, industrial production in April rose 0.3% from the previous month, coming in well above expectations for a 1.5% contraction in the wake of disruptions caused by an earthquake. In addition, other data also beat expectations — household spending in April rose 0.2% from the previous month, compared with forecasts from for a 0.6% drop. On a year-on-year basis, household spending fell 0.4%, but that still beat a forecast for a 1.4% drop. Despite a handful of April readings on Japan's economy came in better than expected, but analysts do not think that will deter Prime Minister Shinzo Abe's apparent drive to delay a planned sales tax hike.
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