Japan's Unemployment Rate Rises to Highest Level in Over a Year Amid Labor Market Shifts

Oct 03, 2025 04:41 pm CST

Japan's unemployment rate increased to 2.6% in August, signaling potential changes in the labor market as companies face chronic worker shortages and wage pressures. Despite this slight cooling, the overall job market remains tight, with businesses increasingly turning to foreign workers and wage increases to address staffing challenges amid speculation about another Bank of Japan rate hike.