ID :
130466
Tue, 06/29/2010 - 22:02
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2ND LD: Japan`s jobless rate edges up in May, worsening 3rd straight month

TOKYO, June 29 Kyodo -
(EDS: UPDATING)
Japan's jobless rate in May inched up to 5.2 percent, worsening for the third
straight month, reflecting companies' cautious stance about adding payrolls due
to uncertain economic prospects amid Europe's sovereign debt woes, government
data showed Tuesday.
But preliminary readings by the Internal Affairs and Communications Ministry
also indicated that the number of job cuts stemming from corporate
restructuring and business failures has dropped in the past two months.
Job availability also improved in May, as the ratio of job offers to job
seekers climbed to 0.50 from 0.48 in April, according to a separate report
released the same day by the Health, Labor and Welfare Ministry.
The result from the labor ministry indicates that 50 jobs were available for
every 100 job seekers in May.
But an official at the internal affairs ministry said, ''The figures still
hover at high levels and we need to remain on guard.''
Echoing the view, Health, Labor and Welfare Minister Akira Nagatsuma also told
a press conference, ''We will take all possible means (to prevent a further
worsening).''
Prime Minister Naoto Kan, who places priority on fiscal consolidation and
economic growth, will be tested on his ability to improve the nation's labor
conditions, which have been sluggish amid a global financial crisis since the
fallout from Lehman Brothers Holdings Inc.'s collapse in late 2008.
''The steep economic recovery, which was recently observed, has already come to
an end,'' Hideki Matsumura, a senior economist at the Japan Research Institute
said, noting that the rate of decline in the number of job holders has not
slowed down so steadily.
Japan's jobless rate hit an all-time high of 5.6 percent in July last year. It
fell below 5.0 percent in January for the first time in 10 months, before
rising back above the line in March.
The seasonally adjusted unemployment rate for May was up 0.1 percentage point
from the previous month's 5.1 percent.
The official at the internal affairs ministry said that the monthly difference
before rounding was even smaller, as the figure came in at 5.17 in May compared
with 5.14 in April.
The unemployment rate among people aged 15 to 24 was particularly high,
suggesting that they began looking for jobs amid signs of an economic pickup
and were entering the labor market.
But Matsumura said the increase instead simply reflects the worsening of labor
conditions, as people in the age group are often vulnerable.
The number of jobless people stood at 3.47 million, unchanged from a year
earlier, while the ranks of job holders sank by 470,000 to 62.95 million, the
28th consecutive decline.
Both the manufacturing and construction sectors continued to be sluggish, as
manufacturing payrolls fell by 220,000, while the construction sector shed
160,000 jobs.
But the medical and social welfare services sectors remained steady, as the
number of payrolls was up 390,000.
The jobless rates for men and women were unchanged at 5.5 percent and 4.7
percent respectively.
Roughly 1.03 million people lost their jobs in the reporting month because of
their employers' decisions, down 70,000 from a year before.
==Kyodo

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