TOKYO- Japan’s jobless rate unexpectedly fell to 2.6 percent in March, hitting the lowest rate since April 2020, although the number of furloughed workers remained high due to effects of the pandemic, official data showed on Tuesday.
The world’s third-biggest economy has been struggling to drive a sure-footed recovery from the COVID-19 pandemic, with the Ukraine war adding to the growing risks.
The data showed some resilience in the labor market, however. The seasonally-adjusted unemployment rate was lower than the median forecast for 2.7 percent in a Reuters poll of economists, which was also the reading in February.
Compared with a month earlier, the number of workers increased by 180,000 while that of those unemployed decreased by 90,000 in March, the data showed, after adjusting for seasonality.
“The drop in unemployment rate indicates signs of recovery” in the labor market, a government official told a media briefing.
“But the impact of the pandemic appears to be lingering and requires close attention,” he added, referring to the number of furloughed workers that remained as high as 2.43 million in March, primarily among face-to-face service sectors.
