Corporate profits have been improving significantly, and, as a whole, have maintained a favorable level around the peak before the global financial crisis (Chart 1). On the back of those, firms have become active on making business fixed investment and on employment.
The active job openings-toapplicants ratio was 1.10 times, marking the highest level in 22 years – that is, since 1992 – and the unemployment rate has declined to around 3.5 percent, which is roughly the same level as the structural unemployment rate (Chart 2). Reflecting such tightening in labor market conditions, wages have been increasing moderately.