TOKYO - PRODUCTION at major Japanese manufacturers fell by its largest margin ever in November as the country's big carmakers and other producers slashed output to deal with slowing demand abroad, the government announced on Friday.

Industrial production fell 8.1 per cent in November from a month earlier, the largest drop since the Japanese government began measuring such data in 1978. The decline followed a 3.1 per cent drop in October.

Production is expected to continue to fall in the months ahead with an 8 per cent fall estimated in December, according to data released by the Ministry of Economy, Trade and Industry.

The dismal numbers show Japan's core manufacturers, which are largely dependent on exports, are slashing production as overseas demand dries up. In recent weeks big names including Toyota and Sony have announced plans to cut production and workers.

The figures show the biggest falls came in production of autos, machinery and electronics.

Separate data released on Friday also painted a dark picture for the world's second-largest economy.

Unemployment rose to 3.9 per cent in November from a month earlier, an increase of 0.2 per cent from October.

The Ministry of Health, Labour and Welfare said 2.56 million people were unemployed in Japan in November, an increase of 100,000 from a year earlier.

The ministry also said consumer prices rose 1.0 per cent from a year earlier, driven by higher costs of basic necessities such as food, fuel and electricity. -- AP