Unemployment rate in Japan fell to over two-decade low during the month of July, raising hopes of a rebound in the dwindling economy. Also, a seemingly revived labor market raised possibilities that the Bank of Japan may not volunteer an immediate rate hike.

Japan’s unemployment rate on a seasonally adjusted basis was 3 per cent in July, with the number of employed persons in the recording month totalling to 64.79 million, an increase of 980,000 or 1.5 per cent from the previous year, data released by the Ministry of Internal Affairs and Communications showed Tuesday.

The number of unemployed persons in July, meanwhile, was 2.03 million, the ministry said, which is a decrease of 190,000 or 8.6 per cent from the previous year. The job availability in Japan held steady in July at 1.37, which means that there were 137 positions available for every 100 people looking for work.

Further, the unemployment rate among women dropped 0.3 percentage point to 2.7 per cent and for men it remained unchanged in July at 3.2 per cent. Meanwhile, voluntary unemployment came in at a seasonally adjusted 870,000 in the recording month, the ministry report added.