Japan Jobless Rate Steady at 2.6%, Slightly Above Consensus

Japan’s unemployment rate held at 2.6% in September 2025, unchanged from the previous month but slightly above market expectations of 2.5%. It remained the highest reading since July 2024, as the number of unemployed increased by 20 thousand to a 14-month high of 1.81 million. Meanwhile, employment rose by 24 thousand to a four-month peak of 68.34 million, while the labor force expanded by 250 thousand to 70.14 million. The number of people outside the labor force decreased by 240,000 to 39.46 million. On a non-seasonally adjusted basis, the labor force participation rate climbed to 64.2%, marking the highest level in three months and up from 63.5% a year earlier. At the same time, the jobs-to-applicants ratio remained at 1.20 for the second consecutive month, the lowest level since January 2022.