Tokyo  - Japan's industrial production plunged to an unprecedented 9.6 per cent in December and unemployment rose, as the widening global recession cut export demands, the government said Friday.

Data from the Ministry of Economy, Trade and Industry revealed a steeper drop in production as compared to the previous record low of 8.5 per cent a month earlier.

The unemployment rate climbed to 4.4 per cent from 3.9 percent, the biggest jump in 41 years.

The International Monetary Fund warned this week that Japan's gross domestic product would shrink 2.6 per cent in 2009, making it the nation's worst contraction since World War II. (dpa)