May 29 (Bloomberg) -- Japan’s unemployment rate climbed to a five-year high in April and job prospects worsened, signaling household spending will weigh on the economy just as exports are showing signs of improving.

The jobless rate rose to 5 percent from 4.8 percent in March, the government statistics bureau said in Tokyo today. The ratio of positions available to each applicant dropped to 0.46 from 0.52, the lowest in a decade, the Labor Ministry said.

The most severe global economic slump since the Great Depression has crippled demand for Japanese cars and electronics, leaving manufacturers with workers and factories they no longer need. Toyota Motor Corp. and Nikon Corp. are among companies forecasting further losses this year, indicating unemployment is likely to keep rising even as exports and production begin to stabilize.

“We’ll start to see the impact of massive output cuts become clearer in the job market,” said Yoshiki Shinke, a senior economist at Dai-Ichi Life Research Institute in Tokyo. “That will leave households with no ability to support the economy.”

Household spending fell 1.3 percent in April, the 14th straight decline, the statistics bureau said today. Outlays by consumers make up more than half of the economy.

Economists expected unemployment to climb to 5 percent in April and household spending to fall 0.7 percent. The ratio of jobs to applicants slid to a lower level than the 0.49 predicted.

Nikon, which is forecasting its biggest loss in 11 years, will eliminate 1,000 jobs, the camera maker said this week. Nisshin Steel Co. said yesterday it plans to cut 9 percent of its workforce.

Unemployment Insurance

The number of people who received unemployment insurance rose a record 59.1 percent to 793,000 in March from a year earlier and will probably keep increasing as it’s a lagging indicator of the job market, according to the Labor Ministry. Economists expect the jobless rate to rise to an unprecedented 5.7 percent next year, according to a Bloomberg News survey.

Other data suggest the worst of the recession may be over. Exports rose in April from March, the second straight month-on- month gain. Sentiment among consumers and merchants climbed for a fourth month as economic stimulus measures took hold.

The government began handing 12,000 yen ($125) to each resident in March to encourage spending. Prime Minister Taro Aso’s administration has also slashed highway tolls and on May 15 started to offer incentives for purchasers of environment- friendly televisions, refrigerators and air-conditioners.

Bank of Japan Governor Masaaki Shirakawa said this week that the economy will probably resume growing this quarter after a record 15.2 percent contraction in the previous three months. Still, economists say any recovery will be weak as long as workers’ jobs remain under threat.

“It’s dangerous to be too pleased with the economy bottoming out,” said Yasunari Ueno, chief market economist at Mizuho Securities Co. in Tokyo. “Japan’s economy will fly low and experience more turbulence until the second half of next year.”

To contact the reporter on this story: Toru Fujioka in Tokyo at tfujioka1@bloomberg.net

Last Updated: May 28, 2009 19:33 EDT