Large corporations reduced workforce by 1 million

The Ministry of Public Management, Home Affairs, Posts and Telecommunications on June 28 announced that the unemployment rate in May was 5.4 percent, showing a 0.2 point rise over the preceding month.

Remarkably, large corporations with more than 500 employees reduced their workforce by 1.01 million over a year ago.

The number of involuntary-unemployed people (mandatory retirement inclusive) increased by 500,000 from the previous year to 1.52 million. 1.13 million of the figure were due to corporate convenience, such as corporate restructuring and bankruptcy.

The National Confederation of Trade Unions (Zenroren), regarding a breakthrough of the ailing job situation as the most important task, proposed that the government advise large corporations to stop mass restructuring and to shorten working hours; create jobs in public sectors like welfare and education services; and take emergency steps which include payment of unemployment benefits for longer periods.

Zenroren pointed out that the adverse revision of the medical insurance system and deregulation of labor legislation are giving consumers anxiety about their futures and forcing loss in their confidence.

To eliminate these negative factors will activate consumption and consequently stimulate the economy and create jobs, Zenroren argued.

The Japanese Trade Union Confederation (Rengo) said that the jobless figure represents government's misjudgment of the economy and urged the administration to change relevant policies to stabilize the job situation. (end)