Throw in idle employees at layoff-averse companies and the rate is more like 10%, figures Dai-ichi Life Research Institute.

FORBES: Greasing the wheels

However, Dai-Ichi Life Research Institute's Mr Shimamine warned that growth may be hampered by "yen strength and financial turmoil in the US and Europe".

BBC: Japan economy slows less than expected in last quarter

"The scenario that Japan's economy will get on a recovery track later this year has not changed, " said Yoshikiyo Shimamine of Dai-Ichi Life Research Institute, adding that growth was given a lift by car manufacturers restoring production.

BBC: Japan economy slows less than expected in last quarter

Big insurers such as Nippon Life and Dai-ichi Mutual have been making ends meet partly by squeezing costs.

ECONOMIST: Japanese life insurance