Business

Published: Tuesday June 30, 2009 MYT 8:38:00 AM
Updated: Tuesday June 30, 2009 MYT 11:50:04 AM

Japan unemployment rises to five-year high(update)


TOKYO: Japan's unemployment rate rose to 5.2 percent in May _ the highest level in more than five years, the government said Tuesday.

The country's jobless rate worsened from 5.0 percent in April, suggesting that while Japanese companies may be starting to recover, their workers face growing insecurity about jobs.

The unemployment rate last climbed to 5.2 percent in September 2003.

The highest the figure has ever reached is 5.5 percent, last hit in April 2003.

The total number of jobless people climbed by 770,000 from a year earlier to 3.47 million, according to the Ministry of Internal Affairs and Communications in a monthly report.

Those with employment fell by 1.36 million from the previous year to 63.42 million. Moreover, another report by the labor ministry showed worsening work prospects.

The ratio of job offers to job seekers hit 0.44 - the lowest on record. The figure indicates that there were 44 positions available for every 100 job seekers.

Thanks to recent stimulus measures by Japanese Prime Minister Taro Aso, household spending logged its first gain since January 2008. Average monthly household spending - a key indicator of private consumption - rose 0.3 percent in May from a year earlier, the government said.

Economists, however, have said that they expect demand to wane once again as the effects of stimulus steps wears off and the labor market deteriorates.

Like its Asian neighbors, Japan's economy relies heavily on exports and was hit hard by the unprecedented drop in global demand triggered last year by the financial crisis.

The country's biggest names, including Toyota Motor Corp. and Sony Corp., responded by aggressively cutting production, stockpiles and jobs.

Leaner manufacturers are now working on replenishing inventories to meet an uptick in overseas demand.

Massive government stimulus spending around the world, particularly in China, is helping fuel sales of cars, equipment and machinery.

Government data Monday showed that industrial output increased 5.9 percent from the previous month, matching a rise in April that marked the biggest jump since March 1953.

While aggressive cost cutting may have benefited companies, it continues to take a toll on workers and families. Retail sales fell 2.8 percent in May to extend its losing streak to nine months, the government said Monday.

Prices are also dropping in the face of weak domestic demand, a troubling trend that threatens to hamper an economic recovery. Last week the government said Japan's key consumer price index tumbled at a record pace in May.

Among other key indicators this week, the Bank of Japan will release its closely watched "tankan" survey of corporate sentiment on Wednesday. - AP

Earlier report

TOKYO: The government says Japan's unemployment rate has risen to 5.2 percent in May.

The Ministry of Internal Affairs and Communications says in a monthly report Tuesday that the country's unemployment rate worsened from 5.0 percent in April.

The total number of jobless people climbed by 770,000 from a year earlier to 3.47 million, the ministry says.

Those with employment fell by 1.36 million from the previous year to 63.42 million. - AP


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