Sources:
Japan Jobless Rise Bodes Ill for Economy,
Japan Unemployment Rate Worsens Economists warned that Japan’s steady expansion over the past five or so years is on the brink of a big slow-down in the wake of rising unemployment numbers over the past few months. Some speculate that the tightening labor market will lead to pressure to increase wages, which will boost consumption and consumer prices. However, if the unemployment rates continue to get worse, these predictions may need to be reevaluated.
Japan’s jobless rate is at a nine year high. Some analysts find it encouraging that there is some data that indicate an increase in consumer spending, but this may not be sustained if unemployment continues to rise. The Ministry of Economy in Japan reported conflicting data, showing that the total number of jobless people fell for the twenty-second month in a row this past September, and was over 100,000 smaller than the number for the previous September.
Question:
1) What might be some of the major causes of Japan’s increasing unemployment rates?
2) Is this likely a temporary blip or could it be indicative of larger problems for the Japanese economy?
1 comment:
Japan was given every assistance by the United States to rebuild after World War II. However the seeds planted were for them to eventually imitate us in our mantra of "free enterprise"
It is well documented how they successfully adopted our factory systems with the help of Dr. Demming. Their work ethic embraced the values of efficiency and high quality.
Unfortunately, what goes around comes around and they were swept up in our materialistic culture. Their current problems are the consequence of imitating us only too well.
Given time this will play out again in countries like South Korea and China.
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