Japan’s unemployment rate was at 2.7% in January 2026, edging higher from figures in the prior five months and market forecasts of 2.6% and, marking the highest level since July 2024. The number of unemployed grew by 60 thousand to a 4-year high of 1.91 million. Meanwhile, employment fell by 290 thousand to 68.17 million, while the labor force dropped 210 thousand to a five-month low of 70.08 million. The number of people outside the labor force increased by 170 thousand to a four-month high of 39.45 million. On a non-seasonally adjusted basis, the labor force participation rate increased to 63.5%, down from 63.9% in December but up from 63.2% a year earlier. Meanwhile, the jobs-to-applicants ratio stood at 1.18, compared with December's reading and estimates of 1.19.