Japan has reported a rise in its unemployment rate during May, fueled by drop in factory yield and domestic consumption.

The rise in unemployment has hindered the recovery in the nation's economy.

In the wake of the elections in the country next month, the decline in the recovery has aroused insecurities for Prime Minister Naoto Kan and his Government.

Kan has been struggling to tame the rising joblessness in the economy, in order to secure votes and cut down the criticism. He is trying to do away with the largest civic debt, fearing the elevation in the taxes.

The enhanced export rates had helped the nation in setting its recovery pace after the slump. However, the latest figures show that the exports have gone down, in view of the worldwide incentive extraction and the effect of European debt crisis.

The unemployment rate has surged by 5.2%, rising against the 5.1% reported in April. On an average, the consumption reduced in May by 0.7%.

"Even though capital investment is recovering, domestic consumption is still subdued. The recovery is likely to continue to rely on exports for the time being", said economist, Yoshiki Shinke.

The nation has been suffering from the wrath and fury of the US, since the G20 Meet, last weekend.