Japan's jobless rate hit a record 5.7% in July and consumer prices fell at a record pace, figures released days before a general election have shown, reported BBC.
Companies are continuing to lay off workers even though the economy has returned to growth after the most bruising recession for decades.
The state of Japan's economy is the key issue in the election campaign.
Opinion polls show that the governing Liberal Democratic Party faces defeat in the election.
It has held power for 53 of the past 54 years.
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