The latest employment figures confirm that Japan's job market is continuing to contract. The number of unemployed hit a record 3.39 million in March, as the jobless rate rose 0.2 points to 4.8 percent. Both figures mark the worst-ever downturn since the government began keeping such records in 1953.
The number of people holding full-time jobs fell to 63.84 million in March, down 840,000 from the same month last year. The number who involuntarily quit their jobs for various reasons, especially company bankruptcies and corporate downsizing, increased by 320,000 from March last year, pushing up the total of such suddenly jobless people to a record 1.06 million. Another 40,000 joined the 260,000 new graduates from colleges and high schools who have failed to find jobs. The total unemployment figure also includes 1.07 million people who had voluntarily quit for personal or other reasons.
The worst, it is feared, is not over. As companies continue to restructure, it seems it will be only a matter of time before the unemployment rate hits 5 percent. One estimate suggests that the jobless rate could top 10 percent if companies were to get rid of all underemployed staff. The surge of unemployment in March seems partially attributable to the fact that companies stepped up their downsizing in attempts to boost their bottom line in the last month of the fiscal year. Whatever the reason, the plight of the jobless is real, particularly for middle-aged employees who have been brought up on the myth of lifetime employment.