Here in Japan, people are wondering where talk of recovery is coming from. The world’s second-largest economy just reported a 5.4% unemployment rate, its worst in six years. The total number of jobless in June grew 31% from a year earlier, to 3.5 million.
Word on the street is that big companies massaged the books to make it look like things are getting better, but workers don’t see it. Just ask anybody holding down a part-time, unskilled job to make up for a pay reduction or cutback in hours.
Even off the street, in the high-rises, data watchers are on to the same idea. “Employment conditions are taking another turn for the worse,” wrote Credit Suisse Japan chief economist Hiromichi Shirakawa. “It is disappointing that the recovery in manufacturing has failed to halt the decline in the number of people employed in the manufacturing sector.”
It sure is. It’s even more disappointing that most companies are looking to cut payrolls further to lower costs even more in anticipation of slow sales for a while yet. The labor ministry reported Friday that there are only 43 jobs available for every 100 job seekers, the lowest that ratio has ever been.
Maybe that’s why deflation is on Japan’s mind. Its consumer price index dropped 1.7% in June from a year prior, and has fallen for four months in a row. That’s the measurement’s most precipitous plunge since the government started tracking it in 1971.
My friend who is an engineer by profession currently works weekends at a pub, earning not much more than minimum wage. “Anything helps,” he told me.
Look insideThe Kelly Letter
Your email is never published nor shared. Required fields are marked *
You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>
<a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>
Here are your three options:
Option 1: Annual Subscription
For just $236.97 per year, you’ll receive everything listed above to completely upgrade the way you manage your investments, including a copy of The 3% Signal. This is what I recommend:
Option 2:Monthly Subscription
If you'd like to try The Kelly Letter without paying the full year, you can pay $19.97 per month, but it will not include a copy of The 3% Signal :
Option 3:Free Email List
If you'd like to hear more from me but aren't ready to part with any money yet, you're welcome to join my free email list:
Join Matt and thousands of other rational investors to invest without stress.
Subscribe to The Kelly Letter now!