Japan Faces Record High Unemployment

While many experts in the United States are breathing a sigh of relief thanks to signs that the economy may be turning around, Japan is currently seeing some ominous signs. Japan, which has the world’s second largest economy, saw unemployment rise to a level it hasn’t seen since the end of World War II.

In July, Japan’s unemployment rate was 5.7%. In June, it was 5.4%. The previous post-World War II record was 5.5% in 2003. According to the latest stats, for every 100 job seekers, only 42 jobs are available.

Experts in the country think that unemployment could reach 6% at some point in the next six months. As it is, the number of unemployed people in Japan is estimated to be 3.6 million. Compared to last year at this time, that number is more than 40% higher.

Another bad sign for Japan is the fact that consumer price index fell 2.2% in July when compared to July 2008. The deflation could make it more difficult for Japan’s economy to turn the corner and start seeing positive signs.

Tokyo (Image: Flickr)