Latest news with #internalAffairsMinistry
CNA
04-07-2025
- Business
- CNA
Japan's household spending rises at quickest pace in 3 years as tariff risks loom
TOKYO :Japanese household spending surged at the fastest pace in nearly three years in May, offering some hopes that tepid consumption might be turning a corner even as risks from U.S. tariffs remain a drag on confidence and economic growth. Analysts say consumers will be wary of the outlook at a time U.S. President Donald Trump's global trade war is raising uncertainty for businesses and policymakers worldwide. Consumer spending in the world's fourth-largest economy in May rose 4.7 per cent from a year earlier, internal affairs ministry data showed on Friday, better than the median market forecast for a 1.2 per cent gain and rising at the fastest pace since the 5.1 per cent increase in August 2022. On a seasonally adjusted, month-on-month basis, spending increased 4.6 per cent, versus an estimated 0.4 per cent uptick and rising at the quickest pace since March 2021 when it surged 6.7 per cent. An internal affairs ministry official attributed the better-than-expected results to higher spending on one-off factors such as automotive-related products and others like eating out. "The three-month moving average in household spending has been positive since December last year and consumption appears to be recovering," the official said. Consumption and wage trends are among key factors the Bank of Japan is watching to gauge economic strength and decide how soon to raise interest rates. Hefty pay hikes have been seen as essential to counter inflation-induced sharp increases in the cost of living. Japanese companies agreed to raise wages by 5.25 per cent this year, marking the biggest pay hike in 34 years, the country's largest labour union group Rengo said on Thursday. "With the yen's appreciation and the downward trend in crude oil prices, it is anticipated that real wages will turn positive year-on-year in the second half of the year as inflation slows," which would lead to a gradual recovery in consumption, said Yutaro Suzuki, an economist at Daiwa Securities. However, Japanese policymakers and analysts are concerned that global trade tensions triggered by Trump's tariff policies may dent the pay-hike momentum and complicate BOJ's efforts to normalise monetary policy. The internal affairs ministry also said consumers remained wary of loosening their purse strings on items with higher prices, with spending on rice dropping by 8.2 per cent in May from a year ago since they cut back on purchasing it. On the trade front, significant uncertainty remained. Trump on Tuesday cast doubt on a possible deal with Japan, indicating that he could impose a tariff of 30 per cent or 35 per cent on Japanese imports - well above the 24 per cent rate he announced on April 2 and then paused until July 9. "If corporate earnings are significantly squeezed (due to the U.S. tariffs), this could have a negative impact on winter bonuses and spring labour negotiations in 2026, which could lead to a slowdown in wage increases," said Masato Koike, senior economist at Sompo Institute Plus.
Japan Times
11-06-2025
- Business
- Japan Times
Japan faces staffing challenges for crucial census
The government is facing mounting difficulties in recruiting pollsters for its national census, conducted every five years to survey all households. Several factors are contributing to the personnel shortage: The pollster workforce is aging, while increased public concerns over privacy have led more residents to refuse to participate. The proliferation of condominium buildings with self-locking entrance doors has also made it physically harder for census workers to reach residents. To address ongoing challenges and ensure the sustainability of the census, the internal affairs ministry is encouraging online participation as a more accessible and efficient alternative. Launched in 1920, Japan's census is designed to accurately assess the state of households and residents nationwide, providing essential data for policymaking. The ministry describes it as "the most important statistical survey in Japan." Traditionally, census questionnaire sheets have been distributed in person. As of Oct. 1 every five years, the national census gathers key information on all residents, including foreign nationals. Data collected include each individual's name, gender and place of employment. The census results serve a number of important purposes, such as redrawing single-seat constituencies for the House of Representatives, the more powerful lower chamber of parliament, and determining how tax revenues are allocated to local governments. Private-sector companies also rely on census data to inform business decisions, such as selecting locations for new convenience stores. Preliminary results from this year's census are expected to be released in May 2026. In the 2015 census, the government was able to recruit 94.8% of the required number of pollsters. In the 2020 census, the fulfillment rate dropped to 87.6%, a decline attributed, in part, to the COVID-19 pandemic. The pollster workforce is also aging, with those 70 or older making up a little more than 30% of all census personnel in the last survey. A survey conducted by Shimane Prefecture in May 2024, the first of its kind in Japan, revealed that 14 out of the prefecture's 19 municipalities reported being "unable to secure" a sufficient number of pollsters. Recruiting pollsters has become increasingly challenging for several reasons. Survey personnel often experience significant psychological stress, largely due to the challenges surrounding securing face-to-face interactions with residents. This is frequently the result of residents not being at home, either genuinely or pretending. There has also been a rise in the number of residents refusing to answer questionnaires, partly because they are unsure whether the survey staff are who they claim to be. The situation is serious in large urban areas as well. In condominiums with self-locking entrance doors, direct face-to-face contact with residents is difficult, often forcing field workers to make repeated visits. "In order to enter condominium buildings, pollsters must first explain (the purpose of their visits) to the building superintendents," an official from the Tokyo Metropolitan Government said. "But gaining their understanding can take considerable time due to increased concerns about privacy." Moreover, "many households are dual-income families, with both adults away during the day, which further complicates efforts" to reach residents, the official added. To help reduce the burden on pollsters, the internal affairs ministry has expanded the use of online questionnaires. For the 2025 census, residents will be able to easily access the survey website by scanning a QR code with their smartphones or other devices. Online participants made up only 37.9% of all respondents in the 2020 census, even at the height of the COVID-19 pandemic. The ministry has set a goal of 50% for this year's census responses to be submitted online. A ministry official highlighted the advantages of online participation. "Receiving responses online can save us a great deal of trouble, such as checking for erroneous entries," the official said. "This not only improves the accuracy of survey results, but also reduces the overall burden on the census administration system, including census workers, local governments and respondents." The ministry also plans to conduct a trial distribution of questionnaire sheets by mail to residents of condominium buildings with self-locking entrance doors in some municipalities across the Kanto region, including Tokyo. While this approach will alleviate the burden on pollsters, it will require municipalities to take on the additional task of mailing the questionnaires. Therefore, the ministry intends to review the results of the trial and consider possible improvements for the 2030 census, officials said.
