Tuesday, 29th June 2010
In General Japan News,
Japanese unemployment rises unexpectedly
The challenges facing the Japanese economy have been laid bare after new figures showed that the unemployment rate rose in May while factory output slowed.
According to statistics from the Ministry of Internal Affairs and Communications, the jobless rate reached 5.2 per cent last month, an increase of 0.1 per cent on April's total.
While unemployment rose, factory output declined in May, with a fall of 0.1 per cent compared to the month before, when production was up by 1.3 per cent.
Yoshiki Shinke, economist at Dai-ichi Life Research, told the AFP that there are a series of problems facing the Japanese economy at present.
"It's hard to say Japan is on track to an autonomous recovery. Even though capital investment is recovering, domestic consumption is still subdued. The recovery is likely to continue to rely on exports for the time being," he stated.
Prime minister Naoto Jan and his cabinet office have made fiscal reform one of their main priorities, with Japan's national debt the highest of any industrialised nation.
Written by Kimberley Homer