The strength of the labor market reinforces the hopes of the Japanese economy getting out of recession

Japan's consumer spending unexpectedly fell in July despite a continuing improvement in the labor market, providing some hope for faster wage growth and thus helping the world's third-largest economy to get rid of long decades of deflation.
Analysts expect the Japanese economy to continue to grow as jobs availability reached their highest levels in more than 43 years.
Household spending fell by 0.2% in July from a year earlier, following a two-and-a-half-year high in June. On the other hand, the unemployment rate stabilized at 2.8% in July, and there were 1.52 positions available for each applicant, the highest since 1974. This is a sign that the economy is still improving and approaching full employment levels.
Japan's economy posted its fastest growth pace in more than two years in the second quarter as consumer and corporate spending recovered. But wage growth remains weak due to some companies still warry about passing profits to employees, raising doubts about the sustainability of growth.