The U.S. jobless rate climbed 0.5 percentage point from the previous month in October to 5.4 percent amid increasing concerns over fallout from the Sept. 11 attacks and the spreading anthrax scare.
In the nonfarm sector, 415,000 jobs were lost, the biggest one-month loss since May 1980.
Japan's jobless rate meanwhile hit a record-high 5.3 percent, according to government figures released late last month.
The latest U.S. employment data were characterized by a sharp deterioration in the service sector, including transport and retail services, in addition to a fall in the manufacturing sector.
The question now in the United States is not whether the economy is actually in a recession but to what extent things will decelerate and for how long negative growth will continue.
In Japan, the government is considering pushing for a law to take effect in 2003 that makes the dismissal of workers easier so businesses can hire new employees under conditions more favorable to management.
If the current trend continues, the Japanese unemployment rate may soon exceed the U.S. jobless rate again.
Japanese postwar employment practices, which were suitable for standardized mass production, are now clearly out of date and individual workers must adjust themselves to the new labor environment.
While the U.S. employment situation is worsening rapidly, the insufficient mobilization of Japan's labor market will likely push up unemployment further and have a more severe impact on the economy.
While Prime Minister Junichiro Koizumi's structural reforms have yet to be realized, they will undoubtedly have a tangible effect on employment.
Given growing expectations of a U.S. economic recovery in mid-2002, the dollar appears likely to gain ground against the yen, although an occasional downturn is inevitable. Once structural reforms kick off in Japan, the yen will likely come under severe selling pressure.