Friday, July 31, 2009

Japan's unemploment rate 6 year high - 5.4%

7/31/2009 02:29:00 AM

Japan's unemplopyment for Jun 09 rose to 5.4%, which is six-year high. Jobless rate up from 5.2% in May is very close to post-World War II high of 5.5%. 830,000 more people are out of the job in Jun 09 compare to a year earlier. Media quoting market statistic of 43 job offers for every 100 Job seekers which is a record low.

Japan's companies have just recovered from the Negative Balance Sheet recession and started to borrow and invest again in 2005. Despite in the worst time, Japan's companies have positive cashflow as they are amongst the best world in terms of production, quality and technologies. That's why they still had cashflow to pay off the debt, which as a result of asset devaluation after the bubble burst. In 2005, Japan companies started to borrow and reinvest again. That's why I believe that Japan was really in the recovery phase in 2005. Unfortunately, this new financial crisis in 2007 has casted a heavy shadow in the recovery.

However, I still think Japan has some of the most advance technologies, which is critial for a country to compete with the rest of the world. I am still holding on to my Japanese' fund.