Friday November 30, 3:03 PM
Record jobless rate adds to Japan's economic blues
By Yoko Nishikawa
sg.biz.yahoo.com
TOKYO (Reuters) - Japan was hit by another set of dismal data on Friday with its jobless rate rising to a record 5.4 percent in October, yet more bad news for policymakers desperate to keep the giant economy afloat.
The key index for consumer prices slid for the 25th straight month, reflecting weak consumption and an appetite for cheaper imported goods, while housing starts and construction orders also dipped in October, government data showed.
Data showed spending by wage-earning households rose a real 1.6 percent in October from a year earlier, the first rise in seven months, but the government said the gain was due to special factors such as the timing of school payments.
While evidence of sluggishness in the world's second-biggest economy is nothing new, the politically sensitive jobless figure highlights the challenges facing Prime Minister Junichiro Koizumi, who has pledged painful but vital reforms.
"The employment situation is severe. The 5.4 percent jobless rate is harsh," Finance Minister Masajuro Shiokawa said.
The unemployment rate among men surged to 5.8 percent in October from 5.4 percent in September as full-time, middle-aged workers lost jobs in an economy rife with bankruptcies and corporate restructuring.
GDP figures to be released next week are almost certain to show that Japan has joined the United States in recession.
Overall, the number of unemployed rose for the seventh straight month to 3.52 million. This was 380,000 more than in October last year, the Ministry of Public Management, Home Affairs, Post and Telecommunications said. |
