Japan’s Unemployment Rate Jumps, Surprising Economists

Japan’s jobless rate jumped to a record 3.9% in March--more bad news for ruling politicians battling to boost the nation’s slumping economy.

But a batch of data released Tuesday provided mixed signals for economists, with some cheered by signs that cautious consumers were spending more and others worried unemployment woes would depress sales and dampen output.

The government said seasonally adjusted unemployment surged to 3.9% in March from 3.6% in February. It was the highest level since 1953, when the current method of compiling the data began, and reflected weakness in Japan’s hard-hit construction sector and manufacturing industries, a government official said.

Although economists had expected the jobless rate to climb to nearly 4% by the end of year, they were shocked by the sudden jump in the politically sensitive indicator.

The surge was bad news for a government already reeling from Japan’s economic dilemma.

In a newspaper poll published Monday by the Mainichi Shimbun, 50% of respondents said they do not support Prime Minister Ryutaro Hashimoto and blamed him for Japan’s economic woes.

“This [unemployment] is a lagging indicator, so it will probably continue to deteriorate, and it’s a political indicator so no one can ignore it,” said Tomoko Fujii, an economist at Salomon Smith Barney in Tokyo.