Japan’s unemployment rate increased slightly to 2.5 percent in August, rising from 2.4 percent in July, marking the first monthly deterioration in five months, according to the Ministry of Internal Affairs and Communications. Despite the uptick, the job market remains relatively stable, officials said.

The total number of employed individuals grew by 30,000 to a seasonally adjusted 68.34 million. However, the rise in unemployment was driven primarily by an increase in voluntary job separations, which climbed 8.0 percent from the previous month to 810,000. This suggests more workers left their positions in search of improved employment conditions. In addition, the number of people dismissed from their jobs also rose by 5.3 percent, reaching 400,000.

New job seekers increased by 2.2 percent, totaling 460,000. An official from the Ministry of Internal Affairs and Communications emphasized that the labor market remains sound, noting the upward trend in voluntary departures as a sign of confidence among workers looking for better opportunities rather than distress layoffs.

Over the past two years, the unemployment rate has tended to rebound after falling to 2.4 percent or lower, following a similar pattern this year. The job availability ratio held steady at 1.18 in August, indicating there were approximately 118 job openings for every 100 job seekers, according to data from the Ministry of Health, Labor and Welfare.

Sectoral employment figures revealed mixed trends. Eight out of 11 sectors experienced declines in job openings, with the accommodation and restaurant industry seeing the steepest drop of 11.1 percent. Wholesale and retail trade also declined by 10.2 percent. By contrast, manufacturing expanded its job availability by 3.9 percent, while the information and communications sector grew by 3.3 percent, contributing to the overall job market dynamics in August.