Japan’s unemployment rate rose to 2.7% in March 2026, slightly above market expectations and up from 2.6% in the previous month. The number of unemployed increased by 10 thousand to 1.86 million. Meanwhile, employment declined by 120 thousand to an 11-month low of 68.15 million, while the labor force shrank by 100 thousand to a seven-month low of 70.02 million. The number of people outside the labor force rose by 80 thousand to a seven-month high of 39.54 million. On a non-seasonally adjusted basis, the labor force participation rate edged up to 63.6% from 63.5% in February and was slightly higher than 63.3% a year earlier. Meanwhile, the jobs-to-applicants ratio stood at 1.18, in line with forecasts but easing from 1.19 in February.