Japan’s unemployment rate fell to 2.4% in July from 2.5% in June, beating the 2.5% market forecast, data from the Ministry of Internal Affairs and Communications showed. The jobs-to-applicants ratio remained at 1.24, indicating 124 openings for every 100 applicants and continued competition among employers for workers. The resilient labor market comes as the Bank of Japan gradually normalizes monetary policy and assesses whether wage growth can support sustainable 2% inflation. While tight employment conditions may bolster wages, consumer spending and domestic demand, real wages remain under pressure from inflation, with demographic decline and productivity challenges still weighing on the longer-term outlook.