Tokyo (AsiaNews / Agencies) - Unemployment as grown in Japan for the 4th consecutive month, reaching 5.3% in June, a record in 2010, while industrial production recorded the highest decline in over a year, according to data revealed yesterday by the Central Statistics Bureau. The slow economic recovery is slowing and Premier Naoto Kan said that creating jobs and stimulating the economy are the first target of the next state budget, currently being developed.
In June, industrial production declined by 1, 5% compared to May. The index of consumer prices, minus fresh produce, lost 1% compared to June 2009.
The situation is complex however, given that several leading companies have instead increased production. The areas most affected are the electronic and automotive manufacturing sectors which are very export-oriented: Sony Corp. and Panasonic Corp., the world leaders in electronic goods, say that Japanese firms are suffering decreased European demand, also because of the stronger yen. Furthermore, domestic consumption spending grew by 0.5% in June after losses in previous two months, a sign that the crisis is affecting families and that there is less confidence in a future recovery. Analysts point out that both the number of unemployed and the number of those looking for have increased. According to private estimates, economic growth in the 2nd quarter of 2010 should have been 1. 9%, following a robust 5% in the first quarter.
Focus is now firmly on the government from whom everyone expects further measures to stimulate the economy.
The government appears willing to adopt a policy of small steps making choices in close correspondence with economic developments. Yesterday, Finance Minister Satoshi Arai said the economy is recovering gradually, "and that deflation is easing "little by little”.
Among the Democratic Progressive Party proposals is the issuing of new long-term government bonds to rake cask back and operate new public funding. Although Khan has also stated that he will continue "to work resolutely for the reduction of public debt."