Has the structural unemployment rate fallen?

Better education, an ageing workforce and easier job searching via the internet have reduced Japan’s structural jobless rate and kept a lid on wage growth in recent years. Even so, employers report severe staff shortages and the ratio of vacancies to applicants is exceptionally high. Even allowing for structural changes, there can be little doubt that the labour market is now very tight. Indeed, there are early indications that wage growth is picking up again.