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02.03.202623:36:20UTC+00Japan Jobless Rate Highest in 1-1/2 Years

Japan’s unemployment rate rose to 2.7% in January 2026, up from the levels seen over the previous five months and slightly above market expectations of 2.6%. This was the highest rate since July 2024. The number of unemployed increased by 60 thousand to 1.91 million, a 48‑month high.

At the same time, employment declined by 290 thousand to 68.17 million, while the labor force shrank by 210 thousand to 70.08 million, its lowest level in five months. The number of people outside the labor force climbed by 170 thousand to 39.45 million, the highest in four months.

On a non-seasonally adjusted basis, the labor force participation rate stood at 63.5% in January, down from 63.9% in December but higher than 63.2% a year earlier. Meanwhile, the jobs-to-applicants ratio came in at 1.18, slightly below December’s reading and the market estimate of 1.19.

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