STATEMENTS

Comments on the June, 1999 unemployment rate

July 30, 1999

Kiyoshi SASAMORI
General Secretary
Japanese Trade Union Confederation (JTUC-RENGO)

  1. The complete unemployment rate in June 1999,announced by the Ministry of General Affairs on July 30, was 4.9 percent, worse than March and April's 4.8 percent and the worst figure since 1953.

  2. At the same time, the Ministry of Labor has decided to urgently apply special funds to create employment opportunities from July 31, in the Kinki area which consists of Shiga, Kyoto, Osaka, Hyogo and Wakayama prefectures.

    This program was enacted in last January as a countermeasure for the urgent employment when the unemployment rose nationwide and in specific areas. Its goal is to improve employment situations for middle aged and older people who have the most difficult time finding new jobs.

    The standard for the application was regulated last June. The company, which hires the unemployment workers from 45 to 59 years old will receive 30,000 yen more in special development funds.

    The standard for this program is when the average unemployment rate goes up more than 5.4% in the region every three months. The average unemployment rate in Kinki area was 5.75% from January to March and from April to June. Kinki area was the second region, following Okinawa, which got this special fund from January to March.

  3. Total unemployment rate went down to 4.6% in May, but it went up 0.3% again in June to the worst figure in history. It is because involuntarily unemployment went up to 1,180,000 higher than the number of the voluntary unemployment workers, which stands at 1,030,000. Also, the number of the employee in the transportation, communication and service industry decreased. The situation is getting worse.

  4. Rengo is upset at the government's attitude which can't end the recession and the anxiety over increasing unemployment despite the government's tremendous budget and time dedicated to fighting it.

  5. The national Diet is discussing the special step bill for reviving the industrial energy' under this severe environment. It is the bill that the government gives preferred tax and financial treatment to companies for tidying up their excessive debt and facilities. This bill will bring more unemployment.

    Rengo demands the government reject this bill, which may increase the anxiety over unemployment in this uncertain situation. Rengo is proposing to create more than 1,000,000 employment opportunities in the welfare, environment and education field and to enact the secure social security system to erase the people's anxiety toward the future and recover from the economic recession with the domestic demands. We strongly demand the government use our proposals.

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