Japan’s Jobless Rate Declines to 2.5% in August

Japan’s unemployment rate fell to 2.5% in August, according to a report released by the government on Tuesday.

The Ministry of Internal Affairs and Communications reported that the seasonally adjusted jobless rate decreased from 2.7% in July.

In contrast, the job availability ratio slightly dropped by 0.01 points from July to 1.23, indicating that there were 123 available jobs for every 100 job seekers in August, based on separate data from the Ministry of Health, Labour and Welfare.

Despite ongoing labor shortages, some companies are hesitant to hire due to rising costs linked to inflation, as reported by Xinhua news agency.

New job postings, a key economic indicator, decreased by 6.5% year-on-year, with particularly steep declines in the hospitality and dining sectors, where job postings fell by 23.5%. The ministry noted that the decline was partly due to a high comparison base from an unusually large number of job postings from major restaurant chains in 2023.