August 3, 2009
Japan, the jobless rate in June rose to 5.4 percent, just shy of the all-time high of 5.5 percent, while the core consumer price index (CPI) marked a record year-on-year decline of 1.7 percent.
Government statistics released Friday showed that the deteriorating labor situation and the possible resurgence of deflation are now two principle concerns for the economy.
It was the fifth straight monthly rise in the seasonally adjusted jobless rate, from 5.2 percent in May, the Ministry of Internal Affairs and Communications said.
The record jobless rate of 5.5 percent was recorded in June and August 2002, as well as in April 2003.
The ratio of job offers to job seekers fell to 0.43 in June--meaning there were just 43 openings for every 100 applicants--the lowest figure on record, the Ministry of Health, Labor and Welfare said.
The jobless rate for men climbed to 5.7 percent, up 0.3 percentage point from the previous month, and for women to 5.0 percent, up 0.1 point.
The labor ministry said the number of jobless had increased by 830,000 from a year earlier to 3.48 million. It was the steepest year-on-year increase on record.
However, the fall in the ratio of job offers to job seekers has been slowing in recent months, from 0.06 percentage point or more earlier this year to 0.02 point in May, and 0.01 point to June.
The ratio of regular job offers to job seekers stayed at a record low 0.24 for the second straight month, meaning more than four applicants competed for every regular position available.
Meanwhile, the core CPI excluding volatile perishables sank to 100.3 in June against the base of 100 for 2005, the internal affairs ministry said.
It was the fourth consecutive month that the index fell from a year earlier, a trend attributable not only to the drop in crude oil prices but also to intensifying price competition. The year-on-year decline was 1.1 percent in May.
There are fears further competition could drag Japan back to a deflationary cycle that will shrink corporate and personal incomes.
Energy prices for gasoline, electricity and gas fell as much as 14.7 percent from a year earlier due to the sharp drop in crude oil prices.
The price of U.S. crude oil futures, which topped $140 per barrel in June last year, has fallen to between $60 and $70.
Prices of food excluding perishables rose a modest 0.5 percent from a year earlier. The increase was smaller than for May, when the prices rose 1.4 percent.
However, prices for bread, spaghetti and other items fell due to the drop in the cost of wheat and other grains.
The CPI excluding energy and food also slid 0.7 percent from a year earlier, reflecting declines in a wide range of products, such as household goods and clothing.
The preliminary CPI in central Tokyo, which serves as a leading index of nationwide changes, declined a record 1.7 percent in July from a year earlier.