Japan's jobless rate returned to a record high of 5.5 per cent in October.
It is expected to remain high as other figures released today showed falls in industrial output, consumer prices and household spending.
"The jobless figures were the worst since the end of World War II and will continue to remain high given the severe economic conditions," said Mr Hidehiko Fujii, an economist at Japan Research Institute.
The jobless rate for men rose to an all-time high of 5.9 per cent from 5.8 per cent in September and the rate for women hit 5.1 per cent from 4.9 per cent.
The number of people out of work surged to 3.62 million in the month, up 100,000 from a year earlier, marking the 19th consecutive monthly increase.
Economists said there was no reason to expect unemployment to fall because more firms were cutting staff and salaries in an attempt to remain profitable.
Last week Japan's Prime Minister Mr Junichiro Koizumi ordered a supplementary budget for the current financial year to combat the 12-year slump in the world's second largest economy. The package will include an extra three trillion yen for public works projects and to strengthen the social safety net.
But share prices rose despite the bleak data, with the Nikkei-225 average of the Tokyo Stock Exchange closing up 0.4 per cent at 9,215.56 points.
AFP