Unemployment figures in Japan are nearing a two-year high while factories have frozen hiring. Household spending, directly connected to economic strength, has also faltered over the past several months. The seasonally adjusted unemployment rate of 4.1 percent for June was higher than the 4.0 percent forecast and will likely add to the woes of consumers already grappling with rising commodity costs and stagnant wages. Customers have cut back on shopping for clothes and other personal items.
See "Japan's unemployment rate nears a two-year high", Leika Kahara, International Herald Tribune, July 28, 2008