Japan Jobless Rate Unexpectedly Edges Up to 2.7%

Japan’s unemployment rate rose to 2.7% in March 2026, slightly above market expectations and up from 2.6% in the previous month. The number of unemployed increased by 10 thousand to 1.86 million. Meanwhile, employment declined by 120 thousand to an 11-month low of 68.15 million, while the labor force shrank by 100 thousand to a seven-month low of 70.02 million. The number of people outside the labor force rose by 80 thousand to a seven-month high of 39.54 million. On a non-seasonally adjusted basis, the labor force participation rate edged up to 63.6% from 63.5% in February and was slightly higher than 63.3% a year earlier. Meanwhile, the jobs-to-applicants ratio stood at 1.18, in line with forecasts but easing from 1.19 in February.

Japan’s unemployment rate was at 2.6% in February 2026, compared with January's 1-1/2-year high and market forecasts of 2.7%. The number of unemployed fell by 60 thousand to 1.85 million. Meantime, employment added 10 thousand to 68.27 million, while the labor force increased 40 thousand to 70.12 million. The number of people outside the labor force edged up 10 thousand to a five-month high of 39.46 million. On a non-seasonally adjusted basis, the labor force participation rate was at 63.5%, unchanged from January but up from 63.2% a year earlier. Meanwhile, the jobs-to-applicants ratio stood at 1.19, slightly above both January’s reading and forecasts of 1.18.

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.