The unemployment rate in Japan has increased to its highest level since November last year while production of cars and electronics fell in June, showing weakness in the world's second largest economy.

The country's jobless rate rose to 5.3 per cent, leaving some 3.4 million people looking for work, the country's ministry of internal affairs and communications said in a report on Friday.

Meanwhile, industrial production retreated 1.5 per cent in June from the previous month as factories reduced output of cars and mobile phones.

International shipments of cars, gadgets and components have been crucial in offsetting weaker demand in Japan.

But concern is mounting that Beijing's efforts to cool China's economy, together with doubts over both eurozone and US demand, may hit the Japanese economy.

"Industrial production continues to show an upward movement although it has been pausing temporarily in part," the ministry report said.