Seasonally Adjusted Unemployment Rate Reaches the 5.0% Mark in July
For the first time since government unemployment
surveys started in 1958, the adjusted monthly
unemployment rate reached the 5% mark, breaking
the previous worst of 4.9% set last month.
For many years, Japan saw its unemployment
rate hold steady around the 2-3% level, even
during periods when other developed nations
suffered from high unemployment. The 5% unemployment
rate therefore raises serious questions regarding
the country's future.
Nikkeiren has already submitted an emergency
employment program that includes measures
to increase employment in the public service
sector, but following the announcement of
the latest unemployment rate figure by the
Ministry of Public Management, Home Affairs,
Posts and Telecommunications on August 28,
the Japan Chamber of Commerce and Industry
as well as labor organizations such as Rengo
and Zenroren (the National Confederation
of Trade Unions) also followed suit with
statements released on the same date.
According to the survey, total unemployment
reached 3.3 million persons (2.03 million
men and 1.27 million women). Employment declines
were particularly steep in the manufacturing
sector (minus 580,000 from last year) and
the construction sector (minus 210,000).
While employment increased in other sectors,
these losses, coupled with a decline in independent
operators of shops and factories, caused
overall employment to decline by 370,000
to 64.52 million.
Because Prime Minister Koizumi's structural
reform measures are expected to result in
an increase in the number of workers dismissed
from their jobs against their will, the Japanese
employment market will require very careful
monitoring.