Japan’s unemployment rate rose to 2.7% in March 2026, slightly above market expectations and up from 2.6% in February. The number of unemployed increased by 10,000 to 1.86 million.
At the same time, total employment fell by 120,000 to 68.15 million, the lowest level in 11 months, while the labor force contracted by 100,000 to 70.02 million, a seven-month low. The number of people outside the labor force increased by 80,000 to 39.54 million, its highest level in seven months.
On a non-seasonally adjusted basis, the labor force participation rate inched up to 63.6% from 63.5% in February, slightly higher than the 63.3% recorded a year earlier. Meanwhile, the jobs-to-applicants ratio stood at 1.18, matching market forecasts but easing from 1.19 in February.
