Record 5 percent unemployment rate is consequence of 'Koizumi reform' --
Akahata editorial, August 29, 2001

Japan's unemployment rate reached a record 5.0 percent in July, the worst
since the government began the publication of unemployment statistics in
1953. The ratio of job offers to job seekers was 0.60, down 0.01 percentage
point from June.

The problem is that the number of employees is shrinking due to the
bankruptcies or closing down of small- and medium-sized enterprises and the
restructuring of major manufacturers. The number of the unemployed who are
looking for jobs is increasing.

Government responsibility is great

The responsibility of the Koizumi Cabinet and the three ruling coalition
parties (the Liberal Democratic Party, the Komei Party, and the New
Conservative Party) for the situation is very serious.

The Koizumi government has tried to convince the public that 5.3 million
jobs will be created. This is a completely unfounded argument, since the
government has stood idle doing nothing to stop the job losses and even
spurred corporations into restructuring based on its "structural reform"
policy.

The government's irresponsible attitude is the cause of the employment
situation worsening unabated. It has helped electronics and
telecommunication giants such as NTT, Fujitsu, NEC, Matsushita Electric,
Toshiba, and Hitachi to announce large-scale restructuring plans, taking
dismissals for granted.

These are the core companies in the information technology (IT)-related
industry which the government has regarded as the key to economic "revival"
and job creation. This means that the government perspectives on the economy
and employment has completely gone wrong.

Not only has the number of unemployed people increased, but the jobless
period has become longer than a year. The circumstances surrounding the
unemployed are bad enough to make many job seekers describe the situation as
"hopeless."

The ruling coalition government of the LDP, the Komei Party, and the New
Conservative Party made the situation worse by cutting funding for
unemployment benefits by 600 billion yen, effective from April. Regrettably,
the people have found the government callous to the jobless people.

Hearing the news about the record five percent unemployment rate, Prime
Minister Koizumi Jun'ichiro said, "The unemployment rate may have to
increase in the course of reform."

Is Koizumi telling the people not make a fuss over a five percent
unemployment rate since more bankruptcies and job losses are expected as a
result of write-offs of bad loans held by major banks? No government has
ever been more indifferent than the Koizumi government to the people's
suffering and anxiety.

The Koizumi Cabinet and the ruling parties are suggesting expanding the
"safety net" against possible dismissals, including improved employment
insurance conditions. This is like ladling water into a bottomless bucket,
as the argument is premised on the existence of the masses of unemployed
people.

It is more necessary than ever for the government to play its part in job
security.

The immediate need is to defend the livelihood of those people who are
now without jobs. The serious situation allows for no delay in remedy, as
many people are unable to find the next jobs even after the period for
unemployment benefits has expired, and only 30 percent of unemployed people
are eligible for the unemployment benefits. It is essential to improve the
system and relax the conditions for unemployment benefits so that the
unemployed will be paid for a longer period.

No more increase in jobless people

Since the Koizumi "reform" is the biggest cause of the increased
unemployment, it must not continue any longer. The government should end its
support for corporate restructuring by major enterprises, and set a legal
norm to prevent unemployment to increase further.

The Japanese Communist Party is proposing that the unemployed be
financially supported and that legal measures be established to prevent
further dismissals. It also calls for urgent and effective measures to
regulate overtime work by work sharing, and to increase the number of public
service employees such as fire fighters and teachers, who are presently
understaffed. (end)