Japan Jobless Rate Highest in 1-1/2 Years

Japan’s unemployment rate was at 2.7% in January 2026, edging higher from figures in the prior five months and market forecasts of 2.6% and, marking the highest level since July 2024. The number of unemployed grew by 60 thousand to a 4-year high of 1.91 million. Meanwhile, employment fell by 290 thousand to 68.17 million, while the labor force dropped 210 thousand to a five-month low of 70.08 million. The number of people outside the labor force increased by 170 thousand to a four-month high of 39.45 million. On a non-seasonally adjusted basis, the labor force participation rate increased to 63.5%, down from 63.9% in December but up from 63.2% a year earlier. Meanwhile, the jobs-to-applicants ratio stood at 1.18, compared with December's reading and estimates of 1.19.

Japan’s unemployment rate held at 2.6% in December 2025, unchanged for a fourth consecutive month and in line with market expectations. The figure remained the highest since July 2024, as the number of unemployed grew by 50 thousand to a 17-month high of 1.86 million. Meanwhile, employment fell by 50 thousand to 68.46 million, while the labor force dropped 50 thousand to 70.31 million. The number of people outside the labor force increased by 50 thousand to 39.27 million. On a non-seasonally adjusted basis, the labor force participation rate stood at 63.9%, down from 64.1% November but up from 63.4% a year earlier. Meanwhile, the jobs-to-applicants ratio edged up to 1.19 from a near three-year low in the prior two months, slightly above the expected 1.18.

Japan’s unemployment rate stood at 2.6% in November 2025, unchanged from the previous three months and in line with market estimates. It remained the highest reading since July 2024, as the number of unemployed declined by 40 thousand to 1.81 million. Meanwhile, employment rose by 500 thousand to another record high of 68.51 million, while the labor force edged up 20 thousand to 70.32 million. The number of people outside the labor force increased by 10 thousand to 39.32 million. On a non-seasonally adjusted basis, the labor force participation rate stood at 64.1%, inched lower from 64.2% October but up from 63.5% a year earlier. At the same time, the jobs-to-applicants ratio remained unchanged at 1.18, staying at its lowest level since January 2022 and aligning with consensus.