Japan may see new hirings slow and job losses increase, particularly among service-sector firms struggling to cope with the intensifying pain of the coronavirus crisis, according to an analysis of survey data by a private think-tank.
FILE PHOTO: People walk inside a building in Tokyo, Japan January 23, 2019. REUTERS/Issei Kato/File Photo
The combination of the terms “hiring activity” and “stagnation” also appeared many times in the survey. “The pandemic may hurt manufacturers. But for this crisis, there’s a high chance non-manufacturers could lead the cycle where worsening business sentiment leads to fewer jobs,” said Takuya Hoshino, an economist at Dai-ichi Life Research.
Japan is on the cusp of a recession, as the outbreak adds to woes besetting an already fragile recovery.
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