Tokyo - Japan's jobless rate hit the worst level in more than three years, the government said Tuesday.

The unemployment rate rose 0.3 percentage point to 4.4 per cent in February from the month before, with 2.99 million people left jobless, the Ministry of Internal Affairs and Communications said in a preliminary report.

Japan's working community faces a tough time, and "the deterioration of payrolls is getting severe," the ministry said.

In February, there were 59 jobs available for every 100 job seekers, which was the worst ratio in six years, according to the Health, Labour and Welfare Ministry.

"We will handle the problem as the top priority," Chief Cabinet Secretary Takeo Kawamura said at a press conference Tuesday, as the government is considering to introduce 2 million jobs in the next three years as part of additional stimulus plan.

Amid declining exports, Japan's manufacturers reduced output and cut labour force. The number of jobholders in the manufacturing industry fell to 11.03 million in February, down 220,000.

The number of dismissals grew 330,000 to 940,000, reaching the worst level since comparable data became available in 2002.

As the unemployment rate increased, Japanese families tried to cut spending.

Average monthly household spending fell 3.5 per cent in February from the year before to 266,044 yen (2,735 dollars).

Household spending figures are a key indicator of individual spending, which accounts for about 55 percent of Japanese gross domestic product. (dpa)