The yen’s rise could results in layoffs in Japan.

A Japanese government panel said that more than 2 million workers in Japanese manufacturing industries will lose their jobs by 1990 if the yen continues its appreciation against other currencies. It concluded that nearly all of the 122 manufacturing firms it studied have been forced to reorganize work forces as a result. If the trend continues, the panel predicted that Japan’s unemployment rate will hit a record 4% in 1990 and result in about 2.5 million jobless. It stressed the need for the government to swiftly promote measures to stimulate the domestic economy.