Japan’s unemployment rate fell to 2.5% in June from 2.6% in May. This marks the first improvement in five months, according to data from the Ministry of Internal Affairs and Communications. The number of employed people in June reached 68.22 million, an increase of 370,000 from the previous year.
This is the highest number since comparable records began in 1953. Women led the gains in employment. On a seasonally adjusted basis, the total number of unemployed individuals decreased by 3.3% to 1.76 million in June.
The decline was attributed to fewer people voluntarily leaving their jobs or seeking new employment. However, separate data from the Ministry of Health, Labor, and Welfare showed that the job availability ratio fell for the third consecutive month.
Japan’s June employment figures improve
In June, the ratio was 1.23, indicating there were 123 jobs available for every 100 job seekers. Every sector recorded fewer available jobs compared to the previous year. The manufacturing sector experienced a 14.6% decline, while lifestyle and entertainment services saw a 13.7% reduction.
Koichi Fujishiro, a senior economist at the Dai-ichi Life Research Institute, commented on the situation. As a whole, shortages mean the labor market continues to be good for job seekers,” he said. “But it appears companies are giving up on hiring people for posts they have had open for some time, leading to balanced contractions.”
Fujishiro cited skill mismatches as a significant reason for the unfilled positions.
The fall in job availability comes despite Japan facing labor shortages due to an aging population. These findings highlight the ongoing challenges in Japan’s labor market. They emphasize the need for solutions that can better align job requirements with the skills of the available workforce.
