FX.co ★ Japan Jobless Rate Steady at 2.5% for Third Straight Month

Japan’s unemployment rate held at 2.5% in June 2026 for the third straight month, matching market expectations and remaining at its lowest level since July 2025. The number of unemployed increased by 10 thousand to 1.75 million, while employment declined by 360 thousand to a three-month low of 68.46 million. The labor force also contracted by 350 thousand to 70.22 million, indicating that the steady jobless rate was driven largely by a smaller workforce rather than stronger hiring. Meanwhile, the number of people outside the labor force rose by 430 thousand to a three-month high of 39.39 million. On a non-seasonally adjusted basis, the labor force participation rate slipped to 64.4% from 64.6% in May, but remained above the 64.2% recorded a year earlier. Separately, the jobs-to-applicants ratio unexpectedly inched up to 1.18 from 1.17, slightly beating market forecasts and signaling that labor demand remained resilient despite softer employment figures.