Japan’s government has been hit by two separate economic bombshells ahead of Sunday’s general election.
On Friday new data showed that unemployment had reached a post-war high, while deflation continued apace to its worst-ever level.
Official figures revealed that in July 5.7 per cent of Japan’s workforce was unemployed, although analysts say the way the government collates the data means the real figure could be much higher. Nevertheless, the country’s jobless rate has now risen by 40.2 per cent in a year.
Although the world’s second biggest economy officially just came out of recession, major companies are continuing to lay off staff, while consumer prices were shown to have fallen 2.2 per cent year-on-year in July.
Both sets of data will make dismal reading for the ruling Liberal Democratic party, which has held power for all but one of the last 53 years.
Japanese prime minister Taro Aso, president of the party, has seen his approval rating tumble amid Japan’s floundering economy.
Analysts are now predicting a landslide victory for perennial opposition the Democratic party of Japan on Sunday.
Fri, Aug 28, 2009
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