Japan’s jobless rate decreased in June, indicating wage growth and potential for manageable inflation.

Unemployment fell to 2.5%, the lowest since January, and 190,000 more people worked.

Labor demand remains stable, with the jobs-to-applicants ratio dropping to 1.30.

The jobs-to-applicants ratio shows 130 jobs offered per 100 applicants in June, with lodging, restaurant, and education services jobs increasing, while manufacturing jobs declined by double digits.

The labor market is strengthening after the pandemic, with international arrivals reaching nearly 2 million, and consumer confidence is rising.

The BOJ is monitoring wage increases and is monitoring Prime Minister Fumio Kishida’s labor market reforms.

Despite global downturn concerns, business investment in Japan is recovering, and the April-June GDP figure is expected to be released in mid-August.