Unemployment in Japan hit a record high of 5 per cent in July as the slowing economy forced firms to cut payrolls, the government said today.
Japan's jobless numbers last month grew 230,000 from a year earlier to 3.3 million people, the Ministry of Public Management, Home Affairs, Post and Telecommunications said.
It was the highest level since 1953 when Japan began keeping records.
The worsening situation triggered a set of measures put in place in 1999 under which the government will give emergency subsidies to all companies that hire workers aged 45 to 59 who have been laid off from their previous jobs.
About 1.14 million people voluntarily left their jobs in July, and 180,000 graduates were unable to find jobs - two major factors that pushed up the rate.
The prolonged global economic slowdown meant unemployment was set to worsen, warned economists.
Yesterday, Toshiba said it would slash 17,000 jobs domestically by March 2004 due to the global slump in demand for technology. NEC has already announced 4,000 job cuts, and Fujitsu has promised to reduce its global payroll by 16,400.
Male unemployment was at a record 5.2 per cent in July, up from 5.1 per cent in June and May, and the number of women out of work rose to 4.7 per cent from 4.6 per cent in June, the ministry said.
AFP