Japanese payrolls posted their 26th straight rise on year in September amid labor shortages. The unemployment rate improved further to an eight-month low of 2.4% after unexpectedly falling to 2.5% in August from 2.7% in July. It is lower the median economist forecast of 2.5%. Job losses and retirements fell a seasonally adjusted 5.1% on the month for the second straight drop and the number of people who began looking for work dipped 2.0% after rising the previous month. Those factors more than offset a 5.7% rise in the number of those who quit for better positions after a sharp drop in the prior month.

Employment rose 270,000 on the year to 68.14 million in September after surging 420,000 in August. The number of unemployed fell 90,000 to 1.73 million after falling a sharp 110,000 for the first drop in five months. It was the lowest since 1.63 million recorded in January 2024.

The year-on-year job creation was led by the information telecommunications and manufacturing industries. The increase among the hotels and restaurants category slowed. Construction jobs were down after recent gains.

Japanese payrolls are expected to post their 26th straight rise on year in September amid tight labor market conditions. The unemployment rate is forecast at 2.5%, unchanged from 2.5% in August, when it unexpectedly improved from 2.7% in July, thanks to lower job losses and retirements. The government continues to describe employment conditions as"showing signs of improvement."

The Unemployment Rate measures the number of unemployed as a percentage of the labor force. The unemployment rate is part of the Labour Force Survey which also includes employment data.

The unemployment rate and employment change are carefully monitored. The employment data show the number employment along with the change in employment for the previous year. Monthly changes in employment also help clarify whether businesses are hiring. The unemployment rate is the percentage of the labor force that is unemployed. A lower jobless rate translates into more income earning workers and greater consumption. Increased spending is a positive for consumer oriented economic growth, something that has lagged in Japan.

By tracking the jobs data, investors can sense the degree of tightness in the job market. If wage inflation threatens, it's a good bet that interest rates will rise; bond and stock prices will fall. No doubt that the only investors in a good mood will be the ones who watched the employment report and adjusted their portfolios to anticipate these events.