Regional economies are generally flagging. Concerns about future deterioration continue.
- The conditions worsened in nine regions. There are concerns about the disappearance of policy effects and future foreign exchange trends. -

	December 2009 （30th）	March 2010 （31st）	June 2010 （32nd）	October 2010 (33rd)	December 2010 (34rd)
Nationwide
	Though sluggish, there are signs of partial recovery.	Still severe, but recovering moderately.	Partially remains severe but recovering moderately.	There was partial recovery in the past, but remains in a severe state now. There are concerns about future deterioration.	Generally flagging. Concerns about future deterioration continue.

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	June 2010 (32nd)	October 2010 (33rd)	December 2010 (34rd)	Comments	Job-offers-to-seekers ratio*1 National average: 0.56 (Previous:0.54)	IIP(production)*2 National average: 91.1  (Previous: 94.8)
Hokkaido				Production is flagging mainly due to the end of eco-car subsidies. Steel production is brisk, driven by increased demand in Asia, but the growth is slowing down. Due to the strong yen, capital investment in factories in Hokkaido has reduced in the paper and pulp industry, affected by an influx of imported paper and the offshore movement of production. Some companies finish the new graduate recruitment process before reaching the planned number if they decide that no more qualified human resources are available. Other companies, though small in number, find it difficult to secure engineering human resources.	0.45  (0.44)	90.2 (93.5)
	Though severe, there are signs of recovery.	Though there are also signs of recovery, remains in a severe state.	Experiences a severe state, with fewer evident signs of recovery
Tohoku				The higher yen has deteriorated the profitability of exporting companies. Some have concerns about the potential decline in order intake as production moves overseas. There is an increasing need for refinancing and a change in loan conditions among companies with a weak cash position. Although some companies intend to hire an increased number of new graduates, the business community at large is more cautious in increasing employment. With job offers from the metropolitan Tokyo area declining, the employment situation for new graduates is still severe.	0.46 (0.45)	93.3 (93.2)
	Though sluggish, there are signs of recovery.	Though there were signs of partial recovery, remains in a severe state.	Remains flat.
Kanto				Although large companies and even small and medium enterprises (SMEs) show a willingness to expand markets overseas, many of them find their price competitiveness being weakened by the strong yen and tariffs, especially compared with rivals in Korea and Taiwan. Some companies say that the SME Recruitment Capacity Improvement Program helped them hire outstanding students. Others employ foreign students, with a view to expanding business overseas.	0.56  (0.54)	86.9  (89.9)
	Though still severe, there are broad signs of recovery.	Though there were signs of partial recovery, remains in a severe state.	Remains flat.
Chubu （Tokai）				Production in auto-related industries declined as domestic car sales fell due to the end of eco-car subsidies. Personal spending in general remains flat, despite sales to celebrate the local sport team’s championship and a surge in demand for home appliances. Not so many companies worry about year-end cash flows because of the effects of government financial measures to cope with the economy and improved business results, although some have concerns about the future. Most companies plan to maintain or reduce the number of new graduates they hire compared with this year’s level. Foreign language skills and management skills are valued by employers with expanded overseas operations in view.	0.68 (0.66)	89.2 (97.8)
	Recovering but still severe.	Remains partially severe but recovering moderately.	Slowing down.
Chubu （Hokuriku）				Production is brisk in the chemical (pharmaceutical) industry and at high levels for electronic parts & devices, especially those designed for LCD TVs, but textiles for automobiles experience a slowdown. Some point out that the continuation of the strong yen will push down sales and profits and intensify competition with other countries’ products, eventually accelerating the offshoring of operations. Companies are cautions in hiring more full-time employees even in the face of staff shortages. Employers aggressively expanding business overseas are more inclined to seek global human resources.	0.74 (0.70)	95.2 (97.2)
	Though moderate, there are signs of recovery.	Recovering moderately but there are concerns about future deterioration.	Indicates weaker signs of recovery.
Kinki				With exports leveling off and production waning, there are strong concerns about future developments, including the disappearance of policy effects and trends in foreign demand. Negative effects of the end of eco-car subsidies and the tobacco tax increase are also felt.Large firms are expanding overseas procurement. Recognizing that more SMEs are urged to enhance overseas operations and regional financial institutions are intensifying support for them. Although year-end cash flow concerns have been mitigated by SME finance policies and other measures, some still face severe conditions.	0.57 (0.54)	93.5 (94.6)
	Recovering moderately	Recovering moderately but there are concerns about future deterioration.	Remains flat.
Chugoku				Production is flagging in the steel and chemical industries due to a slowdown in exports and in the automobile sector due to falling sales in the aftermath of the end of eco-car subsidies, which have supported the recovery of domestic demand. The job market shows signs of recovery, with the job-offers-to-seekers ratio having risen slightly. Many companies in the manufacturing sector feel the adverse effects of the high yen. Some are moving production overseas.	0.70 (0.66)	90.3 (94.5)
	There are continuing signs of recovery.	Recovery is becoming moderate but there are concerns about future deterioration.	Slightly flagging.
Shikoku				Although many manufacturers see the benefits of the strong yen in terms of procurement, prices of some raw materials have risen driven by increased demand from emerging countries. The job-offers-to-seekers ratio shows signs of increase, although only slightly. Some companies emphasize the employment of retired or mid-career workers, but others focus on hiring new graduates to develop them into core human resources over the long term.	0.70 (0.65)	96.2 (95.0)
	There are signs of partial recovery.	There are signs of partial recovery but there are concerns about future deterioration.	Slightly flagging.
Kyushu				Personal spending on home appliances surged for a last-minute demand before the revision of the eco-point program for green home appliances. Many hope for a lower effective corporate tax rate and economic partnership agreements with Asian countries as part of the government’s measures to improve Japanese companies’ international competitiveness and create an environment conducive to doing so. Some companies are becoming active in hiring foreigners for their overseas strategies.	0.50 (0.47)	99.4 (101.2)
	Recovering moderately	Recovering moderately but there are concerns about future deterioration.	Indicates weaker signs of recovery.
Okinawa				The number of tourists visiting the region has remained above the level of a year-ago for nine consecutive months since February. Major hotels continue to attract tourists with low prices, but this strategy prevents them from increasing profits. Companies in this region are less affected by the strong yen because of their small dependence on exports. Slight benefits have been felt by the food industry with respect to raw material purchase prices. Although some companies expect no year-end cash flow problems, the situation still needs to be carefully monitored.	0.33 (0.31)	95.4 (95.8)
	There are some signs of an end to the decline but remains continually sluggish.	Though there are signs of some recovery, it remains continually sluggish.	Though there are signs of some recovery, it remains continually sluggish.
*1 Monthly job-offers-to-seekers ratio: October data (seasonally adjusted) prepared based on the “job/employment placement services statistics,” the Ministry of Health, Labour and Welfare. The previous survey ratios are indicated in parentheses (job-offers-to-seekers ratio for August). *2 Industrial output indices: October preliminary report data (for Hokuriku and Shikoku, September final report; for Okinawa, September preliminary report) (2005=100, seasonally adjusted) prepared based on “Indices of Industrial Production,” the Ministry of Economy, Trade and Industry. The previous survey figures are indicated in parentheses (July final report)