Notes: 1. T he output gap is based on staff estimates. 2. T he Tankan factor utilization index is calculated as the weighted average of theproduction capacity DI and the employment conditions DI for all enterprises. The capital and labor shares are used as weights. T here is a discontinuity in the data in December 2003 due to a change in the survey framework.
Chart 4  Labor Market Conditions Active Job Openings-to-Applicants Ratio and Unemployment Rate  Diffusion Index (DI) for Employment Conditions reversed, DI ("excessive employment" minus "insufficient employment"), % points  -80  -60  1.8  Insufficient employment All industries Manufacturing Construction Retailing Accommodations, eating & drinking services  s.a., ratio  s.a., %  6  1.6 5 1.4  -40  1.2 -20  4  1.0 3 0.8  0  0.6  2  20  0.4  60 CY 2005  Active job openings-to-applicants ratio for full-time employees (left scale) Active job openings-to-applicants ratio (left scale) Unemployment rate (right scale)  Excessive employment  40  0.2  07  09  11  13  15  17  19  Source: Tankan (Short-Term Economic Survey of Enterprises in Japan), Bank of Japan.