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Japan jobless rate hits new high | |
(about 2 hours later) | |
Japan's jobless rate hit a record 5.7% in July and consumer prices fell at a record pace, figures released days before a general election have shown. | |
Companies are continuing to lay off workers even though the economy has returned to growth after the most bruising recession for decades. | Companies are continuing to lay off workers even though the economy has returned to growth after the most bruising recession for decades. |
The state of Japan's economy is the key issue in the election campaign. | The state of Japan's economy is the key issue in the election campaign. |
Opinion polls show that the governing Liberal Democratic Party faces defeat in the election. | |
It has held power for 53 of the past 54 years. | |
Recovery doubts | |
In July, 3,590,000 Japanese were out of work in July, over a million more than a year ago. | In July, 3,590,000 Japanese were out of work in July, over a million more than a year ago. |
Japan's economy grew by 0.9% between April and June, but the latest figures cast doubt on the strength of the recovery. | |
"The recent growth was mainly due to government spending and was not a self-sustaining recovery in the Japanese economy," said Hiroshi Watanabe at Mizuho Investors Securties. | |
"We're unlikely to see a swift recovery for the time being," he added. | |
News that the unemployment rate has risen to the highest since World War II is a blow for the Prime Minister Taro Aso. | |
Opinion polls show his Liberal Democratic Party was already on course for defeat on Sunday for only the second time in more than 50 years. | |
'Deflationary pressure' | |
Other figures released in Tokyo show core consumer prices fell by 2.2% in July from a year earlier, the fastest pace on record. | Other figures released in Tokyo show core consumer prices fell by 2.2% in July from a year earlier, the fastest pace on record. |
And analysts expect prices to fall further. | |
"Domestic demand is pretty weak. We expect deflationary pressure to increase," said Naoko Ogata at the Japan Research Institute. | |
Japan is particularly sensitive to falling prices. | |
The country was stuck in a deflationary spiral for years after an asset price bubble burst at the start of the 1990s. | |
Shoppers put off purchases in the expectation of prices falling further, causing the economy to stagnate. | Shoppers put off purchases in the expectation of prices falling further, causing the economy to stagnate. |
Are you in Japan? Have you been made unemployed recently? You can send us your experiences using the form below. | Are you in Japan? Have you been made unemployed recently? You can send us your experiences using the form below. |
The BBC may edit your comments and not all emails will be published. Your comments may be published on any BBC media worldwide. Terms & Conditions | The BBC may edit your comments and not all emails will be published. Your comments may be published on any BBC media worldwide. Terms & Conditions |