The manufacturing sector still creates more jobs than the services industry in Japan, and prefectures with a reliance on manufacturers have lower unemployment rates than those that bank on services, the government said in an annual report Tuesday.

Nevertheless, manufacturing-dependent prefectures have been bleeding jobs due to the slumping information technology sector and falling exports, the Health, Labor and Welfare Ministry said in the fiscal 2002 white paper on employment.

"The services sector has not created as many jobs as it did in the 1990s," Health, Labor and Welfare Minister Chikara Sakaguchi said at a news conference.