As mentioned earlier, face-to-face services in particular have been under downward pressure recently. However, bankruptcies and unemployment have been fairly curbed, partly due to various government measures and the Bank's measures to support financing.
Looking at the employment and income situation, which determines developments in private consumption, the rise in the unemployment rate consequently has been modest relative to the decline in economic activity (Chart 4). In addition, employee income, which declined in fiscal 2020, has bottomed out and is picking up, partly because of a rise in wages in industries with acute labor shortages.