Job availability reached the best level in over 24 years and the unemployment rate stayed flat at 3.2 percent in May, the government said Friday, indicating that the country's labor market remains tight.
The job availability ratio improved to 1.36 in May, the highest level since October 1991, the labor ministry said. That means that 136 positions were available for every 100 job-seekers.
"The employment situation remains on an improving trend," a government official said during a press briefing.
The nation's labor market conditions have shown signs of recovery as companies appear willing to hire more people, especially in nonmanufacturing sectors.
On a year-on-year basis, the health care and welfare sector added 290,000 jobs to 8.34 million amid the graying of the country's population, while the wholesale and retail sector saw a gain of 60,000 to 10.43 million.
The manufacturing sector, however, cut 40,000 jobs to 10.39 million, weighed down by a strong yen and sluggish domestic consumption, analysts said.
Looking ahead, Takeshi Minami, chief economist at the Norinchukin Research Institute, said that as Britain's vote to leave the European Union has unleashed a negative impact on the global economy, "Japan's labor market may level off in the future."
In the reporting month, the unemployment rate for men was unchanged at 3.4 percent.
The rate for women, meanwhile, declined 0.1 points to 2.9 percent.
The number of unemployed people increased a seasonally adjusted 0.5 percent to 2.12 million.
The number of workers was up 20,000 to 64.09 million.
The number of people leaving jobs voluntarily stood at a seasonally adjusted 880,000.