FX.co ★ Japan Jobless Rate Lowest in A Year

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 2.5%. This marked the lowest level since July 2025. The number of unemployed declined by 80 thousand to 1.67 million, a one-year low, while the number of employed decreased by 150 thousand to 68.31 million, the lowest in four months. The labor force also contracted, falling by 240 thousand to 69.98 million, an 11-month low. At the same time, the number of people outside the labor force increased by 30 thousand to 39.42 million. On a non-seasonally adjusted basis, the labor force participation rate slipped to 64.1% from 64.4% in June, though it remained above the 63.9% recorded a year earlier. Separately, the jobs-to-applicants ratio was unchanged from June at 1.18, slightly below market forecasts of 1.19.