TOKYO (Nikkei)--Japan's income gap is widening as companies are hiring more irregular workers, the Labor Ministry said Tuesday in its fiscal 2010 report on the country's labor market. The ministry noted that companies were prompted to hire more irregular workers in light of eased regulations on labor dispatch service.
The number of workers earning an annual salary of 1-2.5 million yen was in particular on the increase over the decade through 2007, according to the ministry's latest White Paper on the Labour Economy. In the 2000s, the ratio of irregular workers, including those dispatched from manpower agencies, grew at a faster clip, with the ratio now accounting for more than 30% of the country's overall labor force.
This is mainly attributed to the fact that "Major firms, hoping to curtail personnel costs, expanded the hiring of irregular workers over those on a regular payroll," the white paper says. The ministry suggested in the paper that it is imperative for employers to turn irregular workers into permanent employees, so employers can provide higher wages and ensure stable job conditions.
Meanwhile, the number of those fresh from university and college having difficulty finding a job has also increased lately, with hiring appetite souring at firms."It is necessary for companies seeking sustainable management to make viable recruitment plans without being affected by short-term economic trends," the ministry said in the paper.
Source:The Nikkei, August 3, 2010
TOKYO (Kyodo)--Finance Minister Yoshihiko Noda said Tuesday that he will keep in mind the need to avoid the yen's "excessive" rise. "Excessive fluctuations and chaotic moves would have repercussions on the stability of the economy and finance," he told the House of Representatives Financial Affairs Committee. "The basic line is that foreign exchange is determined in the market."
The financial chief indicated, however, that market intervention is still possible, saying, "I want to refrain from commenting on whether to intervene into foreign exchange. "Noda was responding to a question posed by an opposition Liberal Democratic Party lawmaker on how to deal with the yen's recent appreciation against other major currencies.
The U.S. dollar, for example, plunged in New York on Friday to as low as 85.95 yen, a level unseen in local trading since July 1995. That prompted Noda to say at the time, I will carefully watch market movements.
Surce: The Nikkei Aug 3
TOKYO (NQN)--Japan's economic diffusion index rose 1.2 points from June to 33.5 in July, marking the seventh straight month of increase, Teikoku Databank Ltd. said Wednesday The rise in confidence came on brisk exports to emerging markets and a gradual recovery in domestic demand.
However, subindexes for the electronics and auto-related sectors, which have served as main engines for the domestic economy, grew at a much slower pace last month. Teikoku Databank said the economy is still on a recovery track but lacks vigor.
Looking ahead, the DI is expected to improve 2.0 points from July to 35.5 in three months, and increase 1.5 points to 35.0 in six months. The research company said that although the economy will likely maintain its recovery momentum, it may experience a pause down the road. Teikoku Databank polled 22,557 companies nationwide in late July, obtaining valid responses from 50.7%. The DI ranges from 0 to 100, with 50 serving as the boom-or-bust line.
Surce:The Nikkei Aug4
TOKYO (Nikkei)--A consumer spending index declined in July, the first drop in five months, suggesting that a worsening corporate earnings outlook has dampened sentiment.
Nikkei Inc.'s Consumption Forecasting Indicator dropped 2 points to 81.8, falling back to the level seen in April, when the economy was abuzz with signs of rejuvenation. Facing economic uncertainty, consumers apparently held back on spending on travel, leisure and durable goods.
The index is based on a six-point survey of Tokyo metropolitan area residents. Prospects for job hunting improved slightly, but consumers grew less willing to spend on travel and leisure, with that part of the survey losing 4.1 points. The residents also became less optimistic about employers, with that section of the survey suffering a 2.6-point drop.
The index, which is benchmarked to 100 for December 2004, tends to precede patterns of actual spending on such things as audiovisual gear and travel by six months.
Surce:The Nikkei Aug4
HANOI (Nikkei)--Economy, Trade and Industry Minister Masayuki Naoshima will meet with Vietnamese officials in mid-August to try to persuade the government to select Japanese companies for its nuclear power plant project, it has been learned. Naoshima is expected to meet Vietnamese Prime Minister Nguyen Tan Dung and other officials, and may propose new financial and technological assistance for the 750 billion yen (8.66 billion dollar) project.
Masayuki Naoshima These will be the first ministerial level talks between the two countries focusing on nuclear plant construction.Early this year, a consortium of Japanese companies, including Toshiba Corp. , Mitsubishi Heavy Industries Ltd. and Hitachi Ltd. , lost out to Russian state-run nuclear power firm Rosatom in the first phase of Vietnam's nuclear project. The project calls for the construction of two nuclear plants that would be the first in Southeast Asia.
This spring, Tokyo and Japanese companies intensified their efforts to win the second phase of the project, which calls for the construction of two more nuclear plants.Prime Minister Naoto Kan's government is hoping to expand exports of goods and services for infrastructure projects. Kan is scheduled to meet his Vietnamese counterpart in Hanoi in late October.
Surce: The Nikkei Aug. 3
TOKYO (Nikkei)--A Consumer Affairs Agency panel on Wednesday will publish an outline of a study aimed at strengthening consumer protections against fraud, with a view to introducing legislation in 2012.
The outline focuses on three areas. The first proposes new penalties on companies that profit from false food origin labels. Under existing law, businesses can be fined only for failure to comply with the law and continuing to label products fraudulently. The government will consider changing the rules to seize profits gained illicitly. Details on the types of violations subject to sanctions, which agency will be responsible for enforcement, and how fines will be used, will be worked out later.
Home renovation scams are the second area slated for legislation. Some unscrupulous contractors have committed repeated fraud by changing their names and methods of operation after being caught. To prevent home improvement contractors from deliberately dissolving their companies, and in order to confiscate profits from scams, the government plans to give agencies the authority to force contractors suspected of fraud into bankruptcy and freeze their accounts.
The third area will focus on reforms aimed at making it easier for students to get tuition refunds. The government will also promote discussions on introducing a class-action lawsuit system, in which victims or consumer protection groups can act as representatives of a larger group of plaintiffs in litigation.
Business groups have voiced concerns about the class-action proposal in particular because if the range of plaintiffs is broadened too much, it may be difficult for corporate defendants to estimate damages and seek settlements. The Japan Business Federation (Nippon Keidanren) fears that class-action suits could hinder the operations of their members if lawsuits become rampant, as they are in the U.S. The government will aims to flesh out details on proposed legislation covering the three areas by next summer.
Surce: The Nikkei Aug. 4
TOKYO (Nikkei)--An advisory panel to the Labor Ministry gave top priority to boosting the nation's general wage levels in proposing to raise hourly minimum wages for this fiscal year by a nationwide average of 15 yen to 728 yen, up from the average 10 yen hike recommended a year earlier.
The decision is a sign of the government's resolve to raise the nationwide average for the hourly minimum wage to 1,000 yen by 2020, and to lift the incomes of minimum wage earners in 12 prefectures above those of welfare recipients.
To achieve those goals, minimum wages will need to rise by an average 3% in nominal terms or more than 2% in real terms every year through fiscal 2020.Panel members representing labor stressed the need to meet the goals as soon as possible, while those speaking for management called for a greater focus on economic growth.
Source:The Nikkei Aug. 5
TOKYO (Nikkei)--The government is set to sign bilateral agreements with nine countries, aiming to give a boost to Japanese firms looking to export their energy-efficient technologies. As part of its effort to fight global warming, the Ministry of Economy, Trade and Industry (METI) will map out a "bilateral offset mechanism" that will allow Japan to offset carbon emissions through exports of low-carbon technologies and equipment.
The offsets fall under the rubric of the Copenhagen Agreement, reached during the Copenhagen summit on climate change last December. This is the first time Japan will make use of the offset mechanism. Indonesia, the world's largest producer of geothermal energy, hopes the power source can help it address electricity shortages. METI has selected 15 projects proposed by the private sector. Of the nine countries where the projects are to be implemented, the government has already reached basic agreements with Indonesia, Vietnam, the Philippines and India. It plans to start talks soon with Thailand, Laos, Myanmar, China and Peru.
Indonesia is hosting four of the projects. Mitsubishi Corp. (8058) will build a geothermal power plant, while Marubeni Corp. (8002) will undertake a forest conservation project. Marubeni and Tokyo Electric Power Co. (9501) will build an advanced-technology coal-fired power station in Vietnam, and Nomura Research Institute Ltd. (4307) will take part in a project to promote construction of eco-friendly houses in China.
Japan emits some 1.3 billion tons of greenhouse gases a year. The 15 projects, when fully implemented, are expected to cut 5-10 million tons worth of emissions.
Source:The Nikkei Aug. 8 edition
TOKYO (Nikkei)--Sales growth in Asia helped 35 leading autoparts suppliers swing to an aggregate 156.6 billion yen net profit in the three months ended June 30 from the year-earlier 65.9 billion yen loss. Their earnings power has improved thanks to such streamlining measures as consolidating factories. Net profit returned to 91% of the level for the April-June quarter of 2008, just before the financial crisis
Combined sales surged 41% to 3.86 trillion yen, while combined operating earnings moved from an 86.7 billion yen loss to a 274.2 billion yen profit.Denso Corp.'s (6902) operating result improved by 85.8 billion yen to lift the firm 70.6 billion yen into the black. Sales growth pushed up profit by 83.9 billion yen. Demand recovered rapidly not only in China, but also in Southeast Asia, including Thailand and Indonesia.
Keihin Corp. (7251) saw Asia sales soar 46% thanks to increased production by main client Honda Motor Co. (7267). Keihin's operating profit hit a record for the fiscal first quarter. Sales were up in Japan and North America as well. European automobile production rose more than expected as the euro's decline made European manufacturers' exports more competitive, according to Yoichiro Nomura, a senior executive at Takata Corp. (7312), whose European sales jumped 27%. The 35 firms' combined sales were still 15% less than the figure of the April-June quarter of 2008, but the total operating profit exceeded its corresponding tally in the pre-crisis quarter by 11%. Even though sales are low, profitability has improved after streamlining.
Akebono Brake Industry Co. (7238) closed three domestic plants in fiscal 2009. Its first-quarter operating profit hit a record in fiscal 2010. Eighteen of the 35 firms upgraded earnings forecasts for the full year through March 2011.
Source: The Nikkei Aug. 7
TOKYO (Kyodo)--Japan's current account surplus in June fell 18.2 percent from a year earlier to 1,047.1 billion yen, falling for two months in a row, as the income surplus dipped sharply amid falls in income from dividend payments and interest on bonds, the Finance Ministry said Monday.
For the first six months of 2010, the balance came to a surplus of 8,526.2 billion yen, up 47.3 percent from the same period last year, as the goods trade surplus shot up more than six-fold, buoyed by robust exports of such items as automobiles to the United States and Asia, according to the ministry's preliminary data.
In June alone, the current account balance -- the broadest gauge of trade in goods and services -- registered the 17th straight monthly surplus in the reporting month. The surplus in the income account, covering such items as returns from Japanese overseas investments, dwindled 46.0 percent to 462.1 billion yen, as income from dividend payments fell due to sluggish performance at subsidiaries and interest on bonds also declined amid low interest rates, a ministry official said.
The balance of trade in goods and services posted a surplus of 658.8 billion yen, up 35.4 percent.
Exports climbed 29.2 percent to 5,563.1 billion yen for the seventh straight month of expansion, while imports jumped 29.6 percent to 4,794.1 billion yen, rising for the sixth consecutive month. The deficit in services trade, which includes payments for transport and tourism, shrank by 10.6 billion yen from a year earlier to 110.2 billion yen.
In the January-June period, the balance of trade in goods and services came to a surplus of 3,262.4 billion yen compared with a deficit of 358.6 billion yen in the same period last year.
The surplus in goods trade totaled 4,060.1 billion yen, soaring 527.5 percent, the second biggest expansion after 912.5 percent marked in the second half of 2009, as growth in exports offset the increase in imports helped by surging crude oil prices. Exports logged a 39.6 percent jump to 31,386.4 billion yen in the six-month period, the first growth in four half-year periods, while imports rose 25.1 percent to 27,326.2 billion yen, rising for the first time in three periods. The balance of services trade narrowed its deficit by 207.9 billion yen from a year earlier to 797.8 billion yen.
The income surplus slipped 14.6 percent to 5,882.2 billion yen on falls in income from dividends and interest in bonds.
Source:The Nikkei Monday, August 9, 2010
The Office of Commercial Affairs, Royal Thai Embassy in Tokyo, Japan
Source : http://www.depthai.go.th