Japan received more dismal data today with its jobless rate rising to a record 5.4 per cent in October as policymakers try to keep the giant economy afloat.
The key index for consumer prices slid for the 25th straight month, reflecting weak consumption and an appetite for cheaper imported goods. Housing starts and construction orders also dipped in October, government data showed.
Data showed spending by wage-earning households rose a real 1.6 per cent in October from a year earlier, the first rise in seven months, but the government said the gain was due to special factors such as the timing of school payments.
The politically sensitive jobless figure highlights the challenges facing Prime Minister Mr Junichiro Koizumi, who has pledged painful but vital reforms.
The unemployment rate among men surged to 5.4 per cent in October from 5.3 per cent in September as full-time, middle-aged workers lost jobs in an economy rife with bankruptcies and corporate restructuring.
The number of unemployed rose for the seventh straight month to 3.52 million. This was 380,000 more than in October last year, the Ministry of Public Management, Home Affairs, Post and Telecommunications said.
GDP figures to be released next week are almost certain to show that Japan has joined the United States in recession.
