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Overview of the October 2025 Job Market Report

The Tsunagu Institute of Work Styles, a research organization under Tsunagu Group Holdings, has released its latest report summarizing key trends in Japan's job market based on data published by governmental agencies. This report focuses on the job openings-to-applicants ratio, unemployment rates, and new job postings for October 2025.

Key Findings

1. Job Openings-to-Applicants Ratio: The effective job openings-to-applicants ratio for October stands at 1.18, marking a decrease for the second month in a row. This figure is 0.02 points lower than the previous month and has also dropped by 0.07 compared to the same month last year.

2. Unemployment Rate: The total unemployment rate remains at 2.6%, consistent with the previous month. However, it shows a slight increase of 0.1 points year-on-year. Notably, certain age groups, such as those aged 15-24 and 45-54, saw a decrease in unemployment rates compared to last year.

3. Decrease in New Job Postings: The number of new job postings fell by 6.4% compared to the same month last year, marking the sixth consecutive month of decline. However, educational and learning support sectors witnessed a growth of 10.5%, contrasting sharply with significant declines in the hospitality and retail sectors.

Detailed Analysis

1. Job Openings-to-Applicants Ratio

The effective job openings-to-applicants ratio declined to 1.18 in October 2025. This ratio, which indicates the number of job vacancies for every applicant, suggests a cooling market. The part-time job openings ratio also dropped to 1.11, which is a reflection of lower hiring in sectors that typically offer part-time positions. Critically, the ratio for full-time employment fell to 0.99, underlining a challenging environment for full-time job seekers not seen since June 2022.

2. Unemployment Rate Stability

The unemployment rate has held steady at 2.6%, which is positive yet shows signs of strain, especially in younger demographics. While the reduction in unemployment for those aged 15-24 is a good sign, the overall increase of 13,000 individuals becoming unemployed exemplifies the pressures the labor market is currently facing. The data reflects ongoing challenges, with 1.83 million people unemployed in October.

3. Monthly Decline in New Job Postings

The continued decline in new job postings suggests employers are cautious in their hiring practices. The 6.4% reduction year-on-year indicates that various industries are reevaluating their staffing needs in light of changing market conditions. The education sector's growth stands out amid declines in hospitality, retail, and leisure services, which indicates shifting consumer behaviors and possibly an evolving economy.

Conclusion

The results from the October 2025 report underline the complex nature of the current employment landscape in Japan. While there are sectors showing resilience, the overall metrics indicate caution among employers and a competitive job market for applicants. It is critical for job seekers and employers alike to stay informed and adapt to these changing conditions.

About Tsunagu Institute of Work Styles

Founded in 2015 and part of the Tsunagu Group Holdings, the Tsunagu Institute specializes in diverse work style research, offering insights into labor laws and employment trends. They aim to address social issues related to labor demand and supply in 2030 while providing strategic solutions to enhance employment across various sectors.

For more information, visit Tsunagu Group Holdings.