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Japan's Unemployment Rate Hits Record High

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http://www.telegraph.co.uk/finance/economi...ecord-high.html

The jobless rate rose to a worse than expected 5.7pc in July, up from 5.4pc in June, the government said.

More than one million people lost their jobs over the past year, lifting the unemployment total to 3.59 million, as companies slashed costs to cope with the worst recession in decades.

It is unwelcome news for Aso's long-ruling Liberal Democratic Party (LDP), which is trailing far behind the main opposition Democratic Party of Japan (DPJ) in opinion polls ahead of Sunday's general election.

"There's no doubt the job situation is worsening," said Chief Cabinet Secretary Takeo Kawamura, the top government spokesman. "The economy is still in a recovery phase. But we must pay close attention to the job situation."

Official figures last week showed the world's second largest economy returned to positive growth for the first time in five quarters, limping out of recession, but many ordinary people say they are not feeling the recovery.

"The record high jobless rate is bad news for the LDP because ordinary people are sensitive to the job situation," said Masatoshi Sato, chief strategist at Mizuho Investors Securities.

There are also fears that the economy could stumble again as the effects of the government's massive economic stimulus packages fade.

Consumer spending remains weak in Japan, leaving the economy highly dependent on exports. Household spending fell 2pc in July from a year earlier, sharply reversing a 0.2pc rise in June, data showed.

Deflation also deepened last month with core consumer prices dropping 2.2pc a year earlier - the fastest pace on record.

Japan was stuck in a deflationary spiral for years after its asset price bubble burst in the early 1990s, prompting consumers to put off purchases in the hope of further price drops and reducing corporate earnings.

Even before the latest data was released, the opposition's momentum looked unstoppable. It has pledged to put more money in the pockets of households, with cash allowances for child-raising, free high-school education, an increased minimum wage, petrol tax cuts and an end to highway tolls.

The global jobless recovery picks up pace, viva recovery.

Are ordinary people ever not sensitive to the job situation?

Looks like the Japanese are going for a huge stimulus if the opposition wins. That's one huge shopping list to promise to the electorate when govt debt is already at around 200% of GDP.

Debt is wealth.

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http://news.bbc.co.uk/1/hi/business/8225885.stm

'Deflationary pressure'

Other figures released in Tokyo show core consumer prices fell by 2.2% in July from a year earlier, the fastest pace on record.

And analysts expect prices to fall further.

"Domestic demand is pretty weak. We expect deflationary pressure to increase," said Naoko Ogata at the Japan Research Institute.

Japan is particularly sensitive to falling prices.

The country was stuck in a deflationary spiral for years after an asset price bubble burst at the start of the 1990s.

Shoppers put off purchases in the expectation of prices falling further, causing the economy to stagnate.

A deflationary recovery?

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The global jobless recovery picks up pace, viva recovery.

No - the LAST recovery was the official 'jobless recovery'. I'm not sure what the official term is for a recovery where jobs are lost, consumer spending declines, and a deflationary spiral bankrupts everyone. 'Not a recovery' springs to mind.

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No - the LAST recovery was the official 'jobless recovery'. I'm not sure what the official term is for a recovery where jobs are lost, consumer spending declines, and a deflationary spiral bankrupts everyone. 'Not a recovery' springs to mind.

It's called the "recoveryless recovery".

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No - the LAST recovery was the official 'jobless recovery'. I'm not sure what the official term is for a recovery where jobs are lost, consumer spending declines, and a deflationary spiral bankrupts everyone. 'Not a recovery' springs to mind.

Nonrecovery recovery?

Bu11shit Recovery?

Brown Recovery?

Doublethink Recovery?

A depressionary recovery?

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I suspect we will start hearing the term "negative recovery" just as we currently hear "negative growth".

Already done that one here

It is getting surreal with the terms being used.

I wonder how many people would by the negative recovery term? I think I know quite a few in management who would love that terminology.

It would be a lovely groupthink meeting how they could turn a negative recovery into a positive recovery.

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Already done that one here

It is getting surreal with the terms being used.

I wonder how many people would by the negative recovery term? I think I know quite a few in management who would love that terminology.

It would be a lovely groupthink meeting how they could turn a negative recovery into a positive recovery.

Perhaps we could invert the logic and have a "positive depression"?

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Perhaps we could invert the logic and have a "positive depression"?

Yes and excellent idea, we can tell workers they are losing there jobs because the economy is going through a "positive correction".

Sales are in "positive decline"

Banks balance sheets are in a positively challenged position.

This clearly works, I'm feeling in a more positive mood already.

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http://www.telegraph.co.uk/finance/economi...ecord-high.html

The global jobless recovery picks up pace, viva recovery.

Are ordinary people ever not sensitive to the job situation?

Looks like the Japanese are going for a huge stimulus if the opposition wins. That's one huge shopping list to promise to the electorate when govt debt is already at around 200% of GDP.

Debt is wealth.

Horaghhhhhh. More Recovery and Joy and Wealth than ever before.

Don't Japanese people kill themselves when made unemployed due to the disgrace and humiliation they feel? Then they drop off the figues. Handy that. Would probably work in the UK too, maybe Brown's next 'rabit out of the hat' trick; he could incentivise 'Jobless Euthanasia'

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It will probably have the bizarre result of a decrease in suicides.

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