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The staffing industry relates closely to any ups and downs seen in gross domestic product (GDP) as economic growth proves to be a significant indicator on whether a staffing market is doing well or not. And Japan, the world’s second-largest staffing industry after the US, today reported that GDP in Q4 2012 unexpectedly shrank for the third consecutive quarter.
In the three months to December, GDP contracted at an annualised rate of 0.4% when compared to the previous quarter, new figures by the Cabinet Office showed on Thursday. The results were much worse than expected as analysts projected a median forecast of 0.4% annualised growth.
But the Japanese economy minister, Akira Amari, said the economy is bound for a recovery as fiscal plans to stimulate job and economic growth continue to go ahead. The country heavily relies on exports, but the latest data indicates the market is proving fragile.
Japanese engineering staffing firm Meitec Corp. last week reported that clients in the country remain cautious. This is especially the case in the manufacturing industry where demand for staffing services has slowed, it said.