Japan’s unemployment rate held steady at 2.5% in May 2025 for the third consecutive month, matching market expectations. The number of unemployed fell by 40 thousand to a three-month low of 1.72 million, while employment rose by 33 thousand to a record high of 68.37 million. The labor force expanded by 29 thousand to 70.08 million, and those outside the labor force declined by 24 thousand to 39.62 million. The non-seasonally adjusted labor force participation rate climbed to 64.0%, up from 63.7% a year earlier and marking the highest level since June 1998. Meanwhile, the jobs-to-applicants ratio stood at 1.24, below market expectations of 1.26 and down from the previous two months, hitting its lowest level in three months.