Japan’s Unemployment Rate Unexpectedly Rises to 5.3%
July 29, 2010, 7:48 PM EDTBy Aki Ito
(Updates with economist’s comment in the fourth paragraph.)
July 30 (Bloomberg) -- Japan’s unemployment rate unexpectedly rose to a seven-month high in June, adding to concern consumer spending will stall.
Recent data indicate the world’s second-largest economy continued to expand last quarter, albeit at a slower pace as export growth moderated. Companies are still reluctant to increase their personnel costs, according to economist Yoshimasa Maruyama.
“Because young people aren’t getting hired, I expect unemployment to remain at a high level for the coming year,” Maruyama, a senior economist at Itochu Corp. in Tokyo, said before the report.
Household spending has been buoyed by government incentives to buy energy-efficient cars and electronics. The programs are scheduled to expire this year.
Renesas Electronics Corp. will eliminate 5,000 jobs by the end of fiscal 2012, the company said yesterday. Japan’s second- largest chipmaker forecasts a net loss of 80 billion yen ($920 million) for the 12 months ending March 31.
A separate report today showed that the job-to-applicant ratio rose to 0.52 in June, meaning there are 52 job openings for every 100 candidates, the most since March 2009.
Wages have gained for three months, an indication consumers may begin to spend on a wider array of goods and services, and not just cars and household appliances. Summer bonuses at large companies rose for the first time in three years, according to business lobby Keidanren. The money is often equivalent to several months of pay.
--With assistance from Minh Bui in Tokyo. Editors: Russell Ward, Michael Heath
%JPY JNUE <Index> CN JNUENEWS <Index> CN JBTANEWS <Index> CN
To contact the reporter on this story: Aki Ito in Tokyo at aito16@bloomberg.net
To contact the editor responsible for this story: Chris Anstey at canstey@bloomberg.net
