As Japan's leaders do battle against the ravages of deflation and recessionary conditions that grip their economy, unemployment rates are at a postwar high. Government data indicate the unemployment rate set a record high for the second consecutive month in March and now stands at 4.9 percent.
In response to these many problems, Japan's government announced an "emergency" jobs package as the latest incarnation of an obsession for public-sector intervention in its domestic economy. The aim of the Emergency Employment Measures is to "create" 350,000 jobs during the next fiscal year by supporting small businesses and expanding current job-promotion programs to match laid-off workers with new positions. Although 400 billion yen ($3.6 billion) was committed for this jobs-creation scheme, the funds would be diverted from other uses announced in previous budgets.
These funds are dwarfed by the new public-sector budget that stands at a record level of almost 85 trillion yen ($776 billion). All this money is meant to help revive private spending and revive an economy crippled by rising unemployment and declining household incomes.