Japan's jobless rate climbed back to a record high of 5.5% in October and could rise further, as industrial output slumps, deflation deepens and household spending falters, according to the latest official data.
The October unemployment rate was up from 5.4% in September, the Ministry of Public Management, Home Affairs, Posts and Telecommunications said. 'The jobless figures were the worst since the end of World War II and will continue to remain high given the severe economic condition,' an economist said.
The jobless rate for men jumped to an all-time high of 5.9% from 5.8% in September and that for women hit 5.1% from 4.9%.
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. Japan's jobless rate previously hit 5.5% in December last year.
Economists said the jobless rate would remain under pressure as more companies were slashing staff and wages to boost profitability. Spending by salaried households also declined 0.7% year-on-year in October after rising 4.1% the previous month, figures revealed. Wage income fell 1.6%.
Adding to the gloom, Japanese consumer prices in October slipped 0.9% year-on-year, marking the 38th consecutive monthly drop. Deflation deters consumption as people wait for prices to fall further, eating into corporate profits and hindering economic growth.
Last week Prime Minister Junichiro Koizumi ordered an extra budget for the current financial year in a bid to halt sliding prices and end a 12-year slump in the world's second largest economy. The package will include an extra three trillion yen ($24.6 billion) for public works projects and a social safety net.
Separately, the trade ministry said Japan's industrial output in October fell 0.3% from the previous month and forecast November output would drop 0.1%.
