A perception of labor shortage suggested by the diffusion index for employment conditions in the September Tankan has heightened, showing a tightening at almost the same levels seen around 1991-1992. The unemployment rate has been about 3 percent, which is close to virtually "full employment." Wages have been rising moderately, albeit with fluctuations, on the back of the tightening of labor market conditions.
The year-on-year rate of change in hourly cash earnings of part-time employees, which are responsive to labor market conditions, has seen a relatively high increase, being in the range of around 1.5-2.0 percent. Summer bonuses of full-time employees also have increased clearly, mainly in nonmanufacturing firms.