Government attempt to cut back on unemployment insurance program is a grave mistake -- Akahata editorial, October 13 (excerpts)

At a time when 3.61 million people are out of jobs and ten million people are experiencing economic hardships, the government is proposing further cuts in unemployment benefits.

According to a review of the system the Health, Labor and Welfare Ministry published on October 10, the minimum rate for unemployment benefits will be reduced further while the ceiling of daily paid benefits will be decreased, and the payment term for part-timers will be 30 days less than the previous 180 days.

This means that both amounts and terms of paying unemployment benefits will be cut, giving a serious blow to job seekers.

A survey of the Ministry of Public Management, Home Affairs, Posts and Telecommunications shows that only one-fifth of all unemployed people receive benefits from the unemployment insurance, and one-half of them live without any income.

Also, the government is attempting to change the insurance system so that it will help increase the number of unstable employment, such as part-timers and leased workers.

The government argues that changes are necessary because the financial balance of the unemployment insurance has been lost due to the increased number of the jobless, with its reserved fund expiring in fiscal 2003. Their argument is far from convincing.

What is responsible for the sharp increase in the number of the jobless? It is major corporations which have been recklessly pushing ahead with corporate restructuring, and the Liberal Democratic Party-led government which has supported the restructuring schemes that have caused so many bankruptcies and so many unemployed along with its policy of writing-off of bad loads.

The government has cut the ratio of state allotment for the unemployment insurance system, and used the reserved funds to aid major corporations.

The H&L&W Ministry plans to raise unemployment premiums from the current 1.4% of the monthly income of workers.

The government must take due steps to increase the total amount of reserve funds for this system, and work out a plan to charge extra premiums on major corporations because they are responsible for creating most of the 3.6 million jobless.

However, the Koizumi Cabinet is going to dispose of more bad loans, which will only result in an increase in the number of jobless.

The government must take the following measures to safeguard the living conditions of the millions of jobless: extend the period of paying unemployment benefits to one year and urgently establish a life security system for the jobless experiencing severe economic hardships. (end)