Japan's jobless rate rises to 2.5% in October

Japan's unemployment rate in October rose 0.1 percentage point from the previous month to 2.5 percent, deteriorating for the first time in three months, as more people sought to stay in employment after reaching retirement age, government data showed Friday.

The total number of people with jobs climbed 0.2 percent to a seasonally adjusted 67.98 million, following a decrease in September, while those without jobs gained 1.8 percent to 1.71 million, marking the first increase in three months, the Ministry of Internal Affairs and Communications said.

Of those not in work, the number of people who voluntarily left their jobs decreased 5.4 percent to 700,000, but individuals who were let go, including those who reached retirement age, increased 5.4 percent to 390,000.

Ryotaro Tsuchiya, an economist at Mizuho Securities Co, said it is natural that many people were seeking a job in the reporting month after their half-year contracts expired in September. Japan's business year starts in April.

"With the unemployment rate hovering around 2.5 percent, the employment environment shows no significant change and remains tight," Tsuchiya said, adding this trend was reflected in an expansion in the job availability ratio in October.

Separate government data showed that the ratio increased 0.01 point from September to 1.25, indicating there were 125 jobs available for every 100 job seekers.

By industry, there were 8.9 percent more new job offers in the academic research and technical service sector than a year earlier, the Ministry of Health, Labor and Welfare said.

In contrast, new job openings tumbled 6.5 percent in hotel and restaurant services and fell 4.9 percent in education.

© KYODO