The job openings-to-applicants ratio fell sharply amid coronavirus spreading in Japan

Covid-19 outbreak and employment in Japan

The job openings-to-applicants ratio in January, announced by the Ministry of Health, Labor and Welfare, dropped sharply by 0.08 points from the previous month to 1.49. 

The employment situation, which had been solid until now, has begun to show signs of deteriorating. 

In addition to the weak economy after the consumption tax hike last October, the downside risk caused by the spread of the new coronavirus is increasing. 

This is the first time since May 2017 for the active job openings to applicant’s ratio to fall below 1.5. 

The ratio was about 1.6 at the first half of 2019 and recent apparent decline may show the employment is likely to have peaked out. 

With the novel coronavirus spreading in Japan and overseas, the employment situation may not improve in the near term. 

In addition to the stagnating employment, the impact is rampant everywhere. On February 28, the government has called for temporary closure of elementary, middle and high schools nationwide leaving many families in Japan to scramble finding childcare services since then.

Agricultural producers have lost their large customers for their dairy products and vegetables used in school lunches. 

Food and restraint services have lost their customers because people avoid eating out. At retail stores, people who believe groundless rumors that paper products will run out of supplies buy up masks and toilet paper having shelves empty. 

The impact of the new coronavirus on people's lives is getting severe.