Japan's jobless rate hits near two-year high

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TOKYO, July 29 (AFP): Japan said today its unemployment rate hit a near two-year high in June while consumer spending declined, raising concerns that the worsening business climate is hurting the overall economy.

Soaring energy and raw material costs are making companies more cautious about hiring workers, which could have a negative knock-on effect on consumption and economic growth, analysts said.

The jobless rate hit 4.1 per cent in June, the highest since September 2006, the ministry of internal affairs and communications reported. Markets had expected the jobless rate to remain unchanged at 4.0 per cent.

The jobless total rose 240,000 from a year earlier to 2.65 million people.