Tokyo: Japan’s jobless rate climbed to 2.6 percent in February from 2.4 percent in the previous month, the government reported on Friday. This uptick marks the first increase in seven months and comes as more individuals entered the job market amid rising living costs. According to separate data from the labor ministry, the jobs-to-applicants ratio dipped slightly to 1.26 in February from 1.27 in January, contrary to economists’ median forecast of 1.27. This ratio signifies that there were 126 job openings for every 100 job seekers, reflecting a decrease for the first time in three months.
The rise in job seekers outpaced the increase in job openings, potentially fueled by a growing number of elderly individuals seeking employment to supplement their pensions in the face of escalating living expenses.
In February, the total number of employed individuals increased by 0.3 percent compared to the previous month, reaching a seasonally adjusted 67.83 million. Meanwhile, the number of unemployed individuals rose by 7.1 percent to 1.82 million, with 490,000 people newly entering the job market, up by 30,000 from the previous year, according to the Ministry of Internal Affairs and Communications.
A ministry official noted, “Wage hikes may be contributing to growing momentum for people to look for work,” adding that “Some people’s work contracts have also ended, and they are re-entering the market ahead of the start of the new fiscal year.”
Of the unemployed individuals, 770,000 left their jobs voluntarily, representing a 2.7 percent increase from January, while 440,000 were laid off by their employers, marking a 22.2 percent rise.
The number of unemployed women surged by 80,000 to 81 million, while the figure for men increased by 50,000 to 1.01 million.
Notably, certain sectors experienced declines in job offers in February, with the manufacturing sector decreasing by 8.7 percent, and the accommodation and food services sector falling by 8.4 percent. Similarly, the lifestyle and entertainment services sector witnessed a contraction of 7.9 percent.
