Japan's Unemployment Rate Rises - Growth cannot be maintained

Japan Rebound Shows Signs of Cooling as Unemployment Rate Rises
29 May 2012, by Andy Sharp and Keiko Ujikane (Bloomberg)
http://www.bloomberg.com/news/2012-05-28/japan-s-unemployment-rate-rises-for-first-time-in-three-months.html

Excerpt:

Japan’s jobless rate unexpectedly rose and retail sales fell for a second month, underscoring concern that an economic recovery will lose momentum in the face of gains in the yen and Europe’s debt crisis.

The unemployment rate increased to 4.6% in April from 4.5% in March, the first increase in three months the statistics bureau said today in Tokyo.

The median estimate of 26 economists surveyed by Bloomberg News was 4.5%.

Retail sales fell 0.3 percent from March, the Trade Ministry reported.

Sony Corp. is among manufacturers to have announced job cuts that may weigh on an economy that relied on consumer spending for most of its growth in the first quarter.

The expansion may slow as boosts from earthquake reconstruction and government incentives to spur spending fade and Europe’s sovereign-debt crisis and austerity measures cap exports.

“Employment conditions are not improving,” said Masamichi Adachi, senior economist at JPMorgan Securities in Tokyo and a former central bank official.

“Recent economic indicators and a deterioration in financial markets suggest that strong growth cannot be maintained.”