By Leika Kihara

TOKYO, Oct 8 (Reuters)Bank of Japan Governor Haruhiko Kuroda said on Thursday the economy was starting to pick up and was likely to continue recovering thanks in part to the boost from fiscal and monetary stimulus measures.

While consumer prices will fall for the time being due to the impact of slumping oil prices, they are likely to rebound thereafter as the pandemic’s fallout on the economy eases, he said.

“Once the impact of the coronavirus pandemic subsides globally, Japan’s economy is likely to continue improving further as overseas economies resume steady growth,” Kuroda said in a speech to a quarterly meeting of the BOJ’s branch managers.

The upbeat view reinforces market expectations the BOJ will hold off ramping up stimulus for now, and focus on pumping money into the economy with existing lending programmes.

Kuroda said while Japan’s banking system remains stable as a whole, corporate funding conditions remain tight.

“We’ll monitor the impact of COVID-19 and won’t hesitate taking additional easing measures as needed,” he said.

Japan suffered its biggest economic slump on record in the second quarter as the pandemic crippled demand. Analysts expect any rebound to remain modest as fears of a second huge wave of infections weigh on consumption.

The BOJ expanded stimulus in March and April by ramping up asset buying and creating a new lending facility to ease corporate funding strains. It has kept policy steady since then.

(Reporting by Leika Kihara Editing by Chang-Ran Kim and Ana Nicolaci da Costa)

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The number of people who have joined the ranks of long-term unemployment has spiked to a record high in a worrying sign of the economic recovery’s health.

According to the Labor Department, the number of people out of work for more than 27 weeks increased to 2.4 million in September, an increase of 32.5 percent from the previous month. There are 4.9 million people who have been unemployed between 15 and 26 weeks.

Workers who have been separated from their jobs for more than 6 months typically have a more difficult time getting back to work even once the economy improves.

“Last week we saw the biggest spike in long-term unemployment since they started measuring long-term unemployment,” said Michele Evermore, senior researcher and policy analyst at the National Employment Law Project.

The number of long-term unemployed workers is expected to rise in the months ahead, something likely to be exacerbated by President TrumpDonald John TrumpTrump and Biden’s plans would both add to the debt, analysis finds Trump says he will back specific relief measures hours after halting talks Trump lashes out at FDA over vaccine guidelines MORE’s decision to scrap talks with Democrats on a COVID-19 economic relief bill before the elections. The talks were aimed at restoring at least some of the supplemental federal unemployment benefits that dried up at the end of July.

Without a new relief package, small businesses hoping for another round of forgivable loans will be left in the dust. The travel, leisure and entertainment sectors, in particular, may face closures and additional layoffs as colder weather makes dining and entertaining outdoors difficult.

Even if the pandemic comes under control, it could take years to return to earlier employment levels.

“It’s bad news,” said Evermore. “It’s hard on people to be unemployed for

(Bloomberg) —



a group of people sitting at a train station: Guests take pictures outside the closed gates of California Adventure theme park, part of the Disneyland Resort, in Anaheim, California, U.S., on Wednesday, Sept. 30, 2020. Walt Disney Co. is slashing 28,000 workers in its slumping U.S. resort business, marking of one of the deepest workforce reductions of the Covid-19 era.


© Bloomberg
Guests take pictures outside the closed gates of California Adventure theme park, part of the Disneyland Resort, in Anaheim, California, U.S., on Wednesday, Sept. 30, 2020. Walt Disney Co. is slashing 28,000 workers in its slumping U.S. resort business, marking of one of the deepest workforce reductions of the Covid-19 era.

Tens of thousands of job cuts announced by blue-chip companies in a 24-hour period are a warning sign for the world’s recovery and emerge just ahead of two key reports forecast to show limited progress in the U.S. labor market.

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In one of the biggest layoff announcements since the pandemic caused widespread economic shutdowns, Walt Disney Co. said late Tuesday that it’s slashing 28,000 workers in its slumping U.S. resort business. In the hours that followed, the pace of job cuts at some of the world’s biggest companies — across in a range of industries from energy to finance — quickened.

On Wednesday, Allstate Corp., the fourth-largest car insurer in the U.S., said it will cut 3,800 jobs, roughly 8% of its workforce. And Bloomberg reported that Goldman Sachs Group Inc. plans to cut roughly 400 jobs after temporarily suspending job reductions at the beginning of the crisis.

Announcements like these point to further challenges in a rebound that’s already slowed after an initial bounce back in May and June. Weekly figures due Thursday are estimated to show filings for U.S. unemployment benefits remain far above pre-virus levels, while Friday’s jobs report — the last before the November presidential election — is expected to reveal that employers added a half-million fewer workers in September than in August.



a group of people sitting at a train station: Guests take pictures outside the closed gates of California Adventure theme park, part of the Disneyland Resort, in Anaheim, California, U.S., on Wednesday, Sept. 30, 2020. Walt Disney Co. is slashing 28,000 workers in its slumping U.S. resort business, marking of one of the deepest workforce reductions of the Covid-19 era.


© Bloomberg
Guests take pictures outside the closed gates of California Adventure theme park, part of the Disneyland Resort, in Anaheim, California, U.S., on Wednesday, Sept.