Europe South Asia Asia Pacific Americas Middle East Africa BBC Homepage World Service Education



Front Page

World

UK

UK Politics

Business

Sci/Tech

Health

Education

Sport

Entertainment

Talking Point

In Depth

On Air

Archive
Feedback
Low Graphics
Help

Wednesday, July 21, 1999 Published at 06:52 GMT 07:52 UK


Business: The Economy

Japan to create 720,000 jobs

Japan's job centres are straining to cope with the crush of job seekers

The Japanese parliament has passed a 542.9 billion yen ($4.5bn) budget package to fight unemployment. The government hopes that the cash will create about 720,000 jobs.

The country's rate of unemployment currently stood at 4.6% in May, after peaking at a historic high of 4.8% a month earlier.

Most industrialised countries would be happy with that jobless rate, but in a country where companies used to promise their workers life-time employment, being out of work is a hardly bearable prospect for many.

Jobs - until March 2000?

The extra budget will pump money into emergency employment schemes, such as providing financial incentives to companies and non-profit organisations that hire displaced workers.

Central and local governments will be asked to hire about 300,000 more workers on a temporary basis.

Another large chunk of the money will help regional governments deal with costs related to the aging of society.

Continuing Japan's tradition to promote growth industries, some of the money will susidise the creation of new businesses in promising sectors like telecommunications.

Japanese politicians, though, are worried that the jobs package, and similar economic booster programmes, may not be enough to lead the country of of its longest post-war recession.

Many of the public spending programmes will run out during the first three months of 2000. If the economy has not recovered by then, the current signs of recovery could quickly evaporate.

The Ministry of Finance said it would not have to issue extra bonds to finance the programme, which therefore will not add to Japan's already hefty public sector debt.





Advanced options | Search tips




Back to top | BBC News Home | BBC Homepage |


The Economy Contents

Internet Links


Japanese Ministry of Finance

Economic Planning Agency of Japan


The BBC is not responsible for the content of external internet sites.




In this section

Inquiry into energy provider loyalty

Brown considers IMF job

Chinese imports boost US trade gap

No longer Liffe as we know it

The growing threat of internet fraud

House passes US budget

Online share dealing triples

Rate fears as sales soar

Brown's bulging war-chest

Oil reaches nine-year high

UK unemployment falls again

Trade talks deadlocked

US inflation still subdued

Insolvent firms to get breathing space

Bank considered bigger rate rise

UK pay rising 'too fast'

Utilities face tough regulation

CBI's new chief named

US stocks hit highs after rate rise

US Fed raises rates

UK inflation creeps up

Row over the national shopping basket

Military airspace to be cut

TUC warns against following US

World growth accelerates

Union merger put in doubt

Japan's tentative economic recovery

EU fraud costs millions

CBI choice 'could wreck industrial relations'

WTO hails China deal

US business eyes Chinese market

Red tape task force

Websites and widgets

Guru predicts web surge

Malaysia's economy: The Sinatra Principle

Shell secures Iranian oil deal

Irish boom draws the Welsh

China deal to boost economy

US dream scenario continues

Japan's billion dollar spending spree