Japan Jobless Rate Unexpectedly Eases

Japan’s unemployment rate edged down to 2.4% in September 2026, below market expectations and August's figure of 2.5%. The number of unemployed fell by 100 thousand to 1.67 million, while employment increased by 340 thousand to a four-month high of 68.68 million. The labor force expanded by 250 thousand to 70.34 million, while the number of people outside the labor force declined by 200 thousand to a four-month low of 39.13 million. On a non-seasonally adjusted basis, the labor force participation rate edged up to 64.5% from 64.2% in August and a year earlier. Meanwhile, the jobs-to-applicants ratio rose to 1.19 from 1.18 in each of the previous three months, exceeding consensus of 1.18.

Japan’s unemployment rate inched up to 2.5% in August 2026 from July’s 12-month low, slightly above market expectations of 2.4%. The number of unemployed rose by 100 thousand to 1.77 million, while employment added 300 thousand to 68.34 million. The labor force also shrank by 110 thousand to 70.09 million. Meanwhile, people outside the labor force fell by 70 thousand to 39.35 million. On a non-seasonally adjusted basis, the labor force participation rate edged higher to 64.2% from 64.1% in July and 64.0% a year earlier, suggesting labor supply remained relatively firm. Separately, the jobs-to-applicants ratio held steady at 1.18 for the third straight month, in line with consensus, indicating continued tightness in labor demand.

Japan's unemployment rate edged down to 2.4% in July 2026 from 2.5% in each of the previous three months, coming in below market expectations of the same level. It was the lowest reading since July 2025. The number of unemployed fell by 80 thousand to a one-year low of 1.67 million, while employment declined by 150 thousand to a four-month low of 68.31 million. The labor force also shrank by 240 thousand to an 11-month low of 69.98 million. Meanwhile, the number of people outside the labor force rose by 30 thousand to 39.42 million. On a non-seasonally adjusted basis, the labor force participation rate eased to 64.1% from 64.4% in June, though it remained above 63.9% a year earlier. Separately, the jobs-to-applicants ratio held steady at 1.18, unchanged from June and slightly below forecasts of 1.19.