29 January 2001, 12:34  Japan December Unemployment Rate Seen Steady at 4.8%: BN Survey

Tokyo, Jan. 29 (Bloomberg) -- Japan's jobless rate probably held steady at a nine-month high inDecember, while the number of jobs available for applicants at government-run job agencies rose,economists said. The jobless rate stayed at 4.8 percent last month, according to the median of 27 forecasts in aBloomberg News survey. That is just below the record high 4.9 percent set in March. There wasprobably 68 job offers for every 100 applicants at government-run job agencies last month, a threeyear high, the survey found. While more jobs are being offered, it's barely enough to soak up the number of people entering theworkforce or looking for a new job after losing their old one. An increase in bankruptcies is alsothrowing more people onto job queues. ``The jobless rate is worsening, and the number of jobs on offer isn't going to rise much,'' said EishiYokoyama, economist at Chiyoda Life Capital Management Ltd. Slower growth in industrialproduction will also crimp jobs growth as manufacturers scale back on hiring. Factory production rose 1.5 percent last month from November, the Ministry of Economy, Trade andIndustry said today. That was less than the 2 percent gain companies forecast a month ago in aministry survey. The ministry's survey found companies now expect to increase production by 0.7percent this month -- less than half the initial 1.5 percent gain they estimated a month ago. Corporate bankruptcies rose 22 percent last year to 18,769, the fifth highest since the end of World War II, punctuated by some of the biggest bankruptcies on record -- Kyoei Life Insurance Co. andChiyoda Mutual Life. In December, Marutomi Group Co., a shoe store chain that sells toys andapparel, filed for bankruptcy. The Ministry of Public Management, Home Affairs, Posts, and Telecommunications and Ministry ofHealth, Labor, and Welfare will release the December figures at 8 a.m., Japan time, Tuesday.

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