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Yahoo! My Yahoo! Mail More Yahoo! Services Account Options New User? Sign Up Sign In Help Yahoo! Search web search Home Singapore Asia Pacific World Business Entertainment Sports Technology Singapore Asia Pacific World Japan jobless rate up, while prices fall in April By TOMOKO A. HOSAKA,Associated Press Writer - Friday, May 28 Send IM Story Print TOKYO – Japan got a triple dose of sobering economic news Friday as unemployment rose for the third straight month in April, prices kept sliding and household spending fell. The country's jobless rate climbed to 5.1 percent, hitting its highest level since January. The number of jobless stood at 3.56 million, up 2.9 percent from the previous year, according to the Ministry of Internal Affairs and Communications. Those with jobs fell 0.8 percent to 62.69 million. Meanwhile, deflation worsened in April as consumer prices accelerated their retreat. Japan's core consumer price index, which excludes fresh food, fell 1.5 percent from the previous year, extending declines for a 14th consecutive month. The result underscore an uneven recovery in the world's second-biggest economy, where robust exports have yet to bolster hiring or domestic demand. Government figures Thursday showed that exports in April surged 40 percent thanks to growing demand in China and elsewhere in Asia. "Viewed over several months, the (unemployment) trend remains virtually flat," Goldman Sachs economist Chiwoong Lee said in a note to clients. "The pace of deterioration has eased ... but we have yet to see signs of improvement." Prices at home are heading south as stores try to lure increasingly frugal consumers. Lower prices may boost individual purchasing power, but deflation is generally bad for an economy. It plagued Japan during its "Lost Decade" in the 1990s, hampering growth by depressing company profits, sparking wage cuts and causing consumers to postpone purchases. It also can increase debt burdens. Japan's central bank says it does not tolerate deflation but it expects prices to continue falling for the next couple of years. The core CPI for Tokyo _ considered a barometer of broader price trends _ fell 1.6 percent in May, pointing toward another nationwide drop this month. The government's new high school tuition breaks weighed heavily on prices, dragging education costs down 13 percent in April. Separately, the government said household spending slipped 0.7 percent in April from a year earlier as families spent less on clothing, recreation and food. A labor ministry report also showed deteriorating conditions for those looking for work. The ratio of job offers to job seekers stood at a seasonally adjusted 0.48 in April, down from 0.49 last month. That means there were 48 positions available for every 100 job seekers. Recommend Send IM Story Print Related Articles iPad-mania as thousands queue for global roll-out AFP - 18 minutes ago Nokia, Sony join chorus of concern over China factory AFP - 28 minutes ago eBay enlists China and US post services to battle Taobao AFP - 52 minutes ago Prudential shares halted in Hong Kong pending news AFP - 1 hour 14 minutes ago Virgin Blue shares plunge 28% after profit downgrade AFP - 1 hour 43 minutes ago News Search Top Stories Shell buys US group East Resources for 4.7 bln dlrs Obama and family back in Chicago for holiday weekend Spain passes austerity plan by one vote US economy weaker than estimated in first quarter French protest as Europe implements austerity More Top Stories » ADVERTISEMENT Most Popular Most Viewed Most Recommended Anti-HIV drugs slash risk of virus transmission by 92 percent Oil stops gushing from Gulf of Mexico well French protest as Europe implements austerity Obama to extend ban on offshore oil drilling US recovery on track despite European debt concerns More Most Viewed » Scientists stunned as grey whale sighted off Israel Hubble catches planet being devoured by its star UN fears 'irreversible' damage to natural environment Earth may be too hot for humans by 2300: study Ocean fish could disappear in 40 years: UN More Most Recommended » Elsewhere on Yahoo! Financial news on Yahoo! Finance Stars and latest movies Best travel destinations More on Yahoo! News Home Singapore Asia Pacific World Business Entertainment Sports Technology Subscribe to our news feeds Top StoriesMy Yahoo!RSS » More news feeds | What are news feeds? Also on Yahoo Answers Groups Mail Messenger Mobile Travel Finance Movies Sports Games » All Yahoo! Services Site Highlights Singapore Full Coverage Most Popular Asia Entertainment Photos World Cup 2010 Copyright © 2010 Yahoo! Southeast Asia Pte. Ltd. (Co. Reg. No. 199700735D). All Rights Reserved. Terms of Service | Privacy Policy | Community | Intellectual Property Rights Policy | Help

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