Japan's unemployment rate falls to 2.4% in July, lowest since 2025

Japan's unemployment rate dropped to 2.4% in July, marking the first improvement in three months, according to the Ministry of Internal Affairs and Communications. The number of people unemployed decreased while the number of employed individuals rose marginally, according to the official report.

The job market showed resilience, with a ministry official stating that additional observation is necessary. The decline in job cuts played a significant role in the improvement, as fewer people were involuntarily let go from their positions. Specifically, the number of dismissed individuals fell by 7.3% from June, reaching 380,000.

Conversely, those who voluntarily left their jobs remained unchanged, totaling 750,000. The number of job seekers seeking employment decreased by 8.2% to 450,000, as reported by the ministry.

Despite these positive indicators, the job availability ratio remained steady at 1.18, meaning there were 118 jobs available for every 100 job seekers. Within the 11 sectors, six experienced a decline in job opportunities, primarily in accommodation, wholesale and retail trade. Conversely, five sectors witnessed an increase in job openings, including manufacturing and service industries, as noted by the labor ministry.