Japan’s Unemployment Rate Edges Up to 2.5 Percent as Employees Rise for a 54th Straight Month
Japan’s seasonally adjusted unemployment rate rose 0.1 point to 2.5 percent in August, the Statistics Bureau said on 2 October, while the number of employees rose by 390,000 from a year earlier to 62.13 million, the 54th straight month of annual increase. Total employment rose 140,000 from a year earlier to 68.49 million, the first increase in 2 months.
Voluntary job leavers drive the monthly rise
The seasonally adjusted number of unemployed rose by 100,000 on the month to 1.77 million. People leaving jobs of their own accord accounted for 60,000 of that, or 60 percent on our calculation, against 20,000 who lost jobs involuntarily and 10,000 new job seekers. The rate rose 0.2 points for both men, to 2.8 percent, and women, to 2.3 percent.
On an unadjusted basis the picture is steadier: unemployment fell by 20,000 from a year earlier to 1.80 million, the first annual decline in 13 months, and the population outside the labour force shrank for a 54th straight month, by 270,000 to 39.15 million.
Japan labour market, August 2026
| Measure | August | Change |
|---|---|---|
| Unemployment rate | 2.5% | +0.1 point on July |
| Unemployed | 1.77 million | +100,000 on July |
| Employed | 68.49 million | +140,000 on a year |
| Employees | 62.13 million | +390,000 on a year |
| Regular staff | 37.35 million | +240,000 on a year |
| Non-regular staff | 21.26 million | +150,000 on a year |
| Jobs per applicant | 1.18 | unchanged on July |
Rate, unemployed and jobs per applicant are seasonally adjusted; employment counts are not.
Regular jobs lead the gains
Regular staff numbers rose for a 34th consecutive month and non-regular staff for a 5th. On our calculation, regular positions made up 61.5 percent of the year’s gain in employees. The employment rate for people aged 15 to 64 rose 0.3 points from a year earlier to 80.3 percent.
The Ministry of Health, Labour and Welfare said there were 1.18 openings per applicant in August, unchanged from July, and 1.00 for regular employee positions. New openings per new applicant slipped 0.04 points to 2.06, and new openings fell 3.4 percent from a year earlier, with manufacturing up 3.9 percent and information and communications up 3.3 percent, against falls of 11.1 percent in accommodation and food services and 10.2 percent in wholesale and retail. By prefecture of workplace, Fukui had the highest ratio at 1.72 and Osaka the lowest at 0.95.
Why it matters: The small rise in unemployment came mostly from people quitting jobs, not from layoffs, while employee numbers and regular positions kept growing on the year and there are still 1.18 openings for every applicant. That leaves Japan’s labour market relatively tight, even as new openings weaken in some consumer-facing industries.
Outlook: The September survey will show whether the rise in voluntary job leavers persists.
Sources: Statistics Bureau of Japan, Ministry of Health, Labour and Welfare, The Edge.
