Japan Job-Applicant Ratio Slips to 1.22 as Unemployment Holds at 2.5%

Japan’s labour market showed early signs of cooling in June as the job-to-applicant ratio slipped to 1.22, missing economists’ consensus of 1.25 and easing from 1.24 in May. The downturn suggests slightly fewer openings for each job seeker, tempering the tight conditions that have characterised the market since the pandemic rebound. Despite the softer demand for workers, the nationwide unemployment rate held steady at 2.5%, matching both the prior month and market expectations. The combination of a flat jobless rate and fewer offers indicates employers are maintaining staffing levels while scaling back new hiring, adding nuance to the Bank of Japan’s assessment of labour-market-driven wage pressures.