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addition, different sectors from construction, IT, and wholesale help boost the market asexport and productions have improved recently, allowing more labor opportunities dueto these industries requiring a large pool of workers. The Japanese also encourageswomen and elderly citizen to work, bringing in about more than 900,000 new workersto the market. Figure 4: Short term - Quarterly Unemployment Rate (Trading Economics n.d.)CommentsandobservationsUnemployment rate saw a significant increase in early Q4 2018, followed by a slightdecline towards the end. Natural disasters struck Japan in September 2018, causingdamage to properties, airports and transport infrastructure (Straits Times, 2018). Theunemployment rate increased as work had to be stopped for businesses to recover fromdamages. Nov-Dec 2018 saw a 0.1% drop as some businesses were resumed quicklyandemployeeswereneededtohelprebuildtheeconomy.End of Part APart B: Policy Brief Report Briefing for the Japan Finance MinisterPage 3of 7
Page 4of 7ECON1016 SEM1 2019Subject:Findings and Suggestions for Japan’s GDP and Unemployment Rate.Executive summary The purpose of this policy brief is to discuss the economic issues faced by Japan. Theirenormous debt level, vulnerability to aging populations and natural disasters areconsistent hurdles for the economy. The key objective of our recommendations ofBudgetary, Integration of Immigrants and Employees Development and Trainingpolicies is to help to boost the economic growth.RecommendationsThe recommendations of Budgetary, Integration of Immigrants, and EmployeesDevelopment and Training policies would assist citizens to acquire skill sets thatincrease productivity and prevent obsoletion. Additionally, these will also increase thenet migration rate and reduce the national debt, which benefits the nation and leads topopulation growth. Economic rational Japan's vulnerability to natural disasters, aging populations and its enormous debt areconsistent hurdles for the economy. In reference to our diagnostics analysis, bothindicators of GDP and unemployment rate in recent years are greatly affected by naturaldisasters and its aging populations. Its underlying enormous national debt is also themajor cause of slow economic growth.National Debt Has Been A Significant Contributor to Japan Sluggish EconomyJapan is currently the most indebted country; 233% of GDP. To lower the burden ofdebt, the government reduced the interest rate and has been encouraging companies toincrease wages to lift consumer spendings and investments (Pham, 2017). Despite that,people is still unwilling to spend and take higher investment risks. The implementationof a Budgetary Policy is to reduce its national debt, where it affects the aggregatedemand in the short run and influences savings, investment, and growth in the long runby decreasing taxes and increasing government expenditure. As taxes decreased, thehousehold's take-home pay increased, which will increase in savings, spendings, andinvestments. As government expenditure increased, it will alleviate unemployment and