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Yahoo! My Yahoo! Mail Yahoo! Search Search: Sign InNew User? Sign Up News Home - Help Navigation Primary Navigation Home Singapore Asia Pacific World Business Entertainment Sports Technology Top Stories Most Popular Secondary Navigation Singapore Asia Pacific World Search Search: Japan unemployment hits three-year high AFP - Wednesday, April 1 TOKYO (AFP) - - Japan's unemployment rate hit a three-year high of 4.4 percent in February, the government said on Tuesday, as the deepening recession tightened its grip on Asia's largest economy. ADVERTISEMENT Consumer spending meanwhile fell 3.5 percent month-to-month in the latest set of gloomy figures for an economic powerhouse on course for its worst recession since World War II. "There is no good news in those data," said JP Morgan senior economist Masamichi Adachi. Japan's heavily export-dependent economy shrank at an annualised pace of 12.1 percent in the last quarter of 2008, as the downturn has dried up demand for its cars, high-tech goods and other popular exports. Major manufacturers have cut back on production and slashed tens of thousands of jobs since the crisis began. Exports in February dropped nearly 50 percent year-on-year. "The employment data is likely to continue worsening for the next three to six months," said Hiroshi Watanabe, an economist at Daiwa Research Institute, a private think-tank. The government said there were only 59 available jobs for every 100 job-seekers while unemployment rose to 4.4 percent from 4.1 percent the previous month -- matching a high last seen in January 2006. There were 2.99 million people without jobs, up 330,000 from a year ago. The government also estimated that more than 192,000 non-regular workers have been laid off or will have lost their jobs between October and June. "We recognise that the current (employment) situation remains severe," said government spokesman Takeo Kawamura. "There is a need for additional measures" to create new jobs, he said. To revive Asia's biggest economy, Prime Minister Taro Aso was set to outline plans for a new stimulus package -- Japan's fourth since October -- before he leaves for the Group of 20 summit in London Thursday. The extra spending is reportedly expected to be worth more than 10 trillion yen (102 billion dollars) and aims to help meet the goal of creating two million new jobs over the next three years. The global slowdown has left few economies unscathed, but Japan has been hit especially hard. The International Monetary Fund (IMF) says the economy will shrink by 5.8 percent this year, far worse than expected in Europe and the US. Japanese officials have repeatedly acknowledged that the economy's dependence on exports to the United States and elsewhere means the nation needs to see its trading partners get back to economic health. "We must wait for the economies of other countries around the world to recover," Finance Minister Kaoru Yosano said in Tuesday's Wall Street Journal. The new stimulus package will reportedly include moving forward scheduled public works projects, and a renewable energy push that will increase the use of solar power by 20 times the current level in the next decade. Prime Minister Aso has also recently suggested temporarily lowering or scrapping the inheritance tax to encourage elderly people to pass on their savings to the young, hoping the money will be used to buy new cars and homes. Aso told his ministers and lawmakers to draft the package by mid-April. Japan has approved three stimulus plans since October with spending, tax cuts and other measures worth a combined 75 trillion yen (765 billion dollars), although actual fiscal spending totalled only about 12 trillion yen. Email Story IM Story Printable View Blog This Recommend this article 0 users recommend Sign in to recommend this article » Most Recommended Stories » Related Articles: China's Economy BeijingWest to buy Delphi suspension, brakes unitAP - 1 hour 1 minute ago SABIC CEO sees growth in chemicals sector by year end: CNBCReuters - 1 hour 13 minutes ago FAA sees 9 percent fewer air passengers this yearAP - 2 hours 3 minutes ago China quietly extends its currency's global reachAP - 2 hours 34 minutes ago Related Articles: Business Fox News launches Web site FoxNation.comAP - 1 hour 12 minutes ago Euro pares gains vs dollar on housing dataReuters - 1 hour 12 minutes ago SABIC CEO sees growth in chemicals sector by year end: CNBCReuters - 1 hour 13 minutes ago World Bank offers trade boost, OECD casts G20 shadowReuters - 1 hour 15 minutes ago India govt did not need all planned MSS funds-cbankReuters - 1 hour 16 minutes ago Enlarge Photo Japan unemployment hits three-year high Related Photos Slideshow Full Photo Coverage: Business & Economy Related Full Coverage China Economy china economy All Full Coverage Most Popular – Business Viewed 100,000 secular Britons seek 'de-baptism' Prince William up for Afghanistan fight: report World auto shake-up leaves investors reeling Hot tea linked with throat cancer Obama offers tough love to US car giants View Complete List » Search: Home Singapore Asia Pacific World Business Entertainment Sports Technology Top Stories Most Popular Copyright © 2009 Yahoo! 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