FX.co ★ Japan Jobless Rate Holds at 2.5%

Japan’s unemployment rate held steady at 2.5% in May 2026, unchanged from April and matching market expectations. It remained at its lowest level since July 2025, as the number of unemployed people fell by 50 thousand to 1.74 million, the lowest in 10 months, while employment increased by 610 thousand to a record 68.82 million. The labor force also expanded by 20 thousand to an all-time high of 70.57 million. Meanwhile, the number of people outside the labor force decreased by 40 thousand to a record low of 38.96 million.

On a non-seasonally adjusted basis, the labor force participation rate inched up to 64.6%, from 64.4% in April and 64.0% a year earlier, underscoring a continued improvement in labor market participation. At the same time, the jobs-to-applicants ratio eased to 1.17 from 1.18 in both March and April, its lowest level in five months, indicating a slight softening in hiring demand despite an overall tight labor market.