31.   That caused the agency to downgrade its view of the employment situation.

32.   Taichi Sakaiya, the head of the Economic Planning Agency, said Friday that the employment situation would probably worsen before it gets better.

33.   The employment situation in Japan is grim, and layoffs are increasing for workers at all ages, an agency official told reporters.

34.   The group will continue its work until there are clear signs that the overall employment situation has improved.

35.   The official, who spoke on condition of anonymity, said there will be no sharp improvement in the employment situation in the near term.

36.   Underscoring the severity of the employment situation, the data showed that more and more jobs are being filled by temporary workers.

37.   While industrial production and other economic indicators have turned upward recently, the employment situation remains severe, an agency official said.

38.   Housing starts have risen and industrial output is slowly increasing, while the employment situation is still severe, the report said.

39.   International Trade and Industry Minister Shunpei Tsukahara said the business sentiment of small- and medium-sized companies had yet to improve and the employment situation remained severe.

40.   A government official said the employment situation remained serious due to stepped up restructuring efforts.