Commentary Directory

Japan Unemployment Rate: August 2023

Jacob Hess
September 28, 2023

Japan Unemployment Rate

9/28/2023 (August 2023)

2.7% (0.0 ppts)


Link Icon Toggle Icon


Jobs Added +50,000 MoM
Unemployed Individuals +10,000 MoM

Japan’s unemployment rate rate unchanged in August at 2.7%. The labor force composition was largely unchanged with 50,000 jobs added and 10,000 individuals becoming unemployed. About 90,000 left the labor force. Despite that, labor force participation of 15 to 64 year olds is up 0.5 ppts over the last year to 81.5%, and the employment rate of that population is up 0.4 ppts to 79.2%. The unemployment rate is only up 0.1 ppts from last year which suggests the Japanese labor market remains strong despite momentum fading from growth.

The Japanese economy continues to be held together by a strong labor market which is supporting consumers’ incomes. There continues to be little pressure on firms to release workers despite some softness in manufacturing becoming apparent. The increase in the prime working age labor force over the last year will likely keep wage growth contained so that it is not really a force pushing inflation higher.