2009 - Jobless Rate worst since 2002

Seasonally adjusted unemployment rate rose to 5.2 percent in fiscal 2009, deteriorating for the second straight year and topping the 5 percent mark for the first time in six years as the global economic downturn put pressure on payrolls, government data showed Friday

The rate, which rose 1.1 percentage points from the previous year, was the second worst on record after 5.4 percent in fiscal 2002, the Ministry of Internal Affairs and Communications said in a preliminary report.

During the 12 months, a separate report by the labor ministry said, the ratio of job offers to job seekers was at a seasonally adjusted 0.45, down from 0.77 in fiscal 2008 to the lowest ever level. The ratio means there were 45 jobs available for every 100 job seekers.

The readings reflected a tough employment condition as companies reduced their payrolls amid the lingering effect of the global financial turmoil in 2008 and subsequent economic downturn.

But there are mixed views, given the recovery of the Japanese economy.

"After the unemployment rate peaked in July (at 5.6 percent), Japan has recovered at a relatively fast rate among developed countries," said Kyohei Morita, chief economist at Barclays Capital Japan Ltd. "That is largely due to improving global economic conditions and subsequent recoveries in Japanese exports. I think we don't need to worry about a double-dip recession."

In March alone, the jobless rate deteriorated to 5.0 percent from 4.9 percent in February due largely to sluggish conditions for manufacturers. The result, which marked the first deterioration in four months, was worse than the average market forecast of 4.9 percent in a Kyodo News survey.

The number of jobless people was 3.5 million, up 150,000 from a year earlier for the 17th consecutive month of increase, said the internal affairs ministry.


A total of 1.11 million people lost their jobs involuntarily, or due to their employers' decisions, up 50,000 on year.

The number of jobholders fell 350,000 to 62.1 million for the 26th consecutive month of decline.

The ratio of job offers to job seekers was at 0.49 in March, up from 0.47 for the third straight month of improvement and recovering to levels unseen since March last year, the Health, Labor and Welfare Ministry said.

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