Japan's unemployment rate held steady in October as the availability of jobs improved and household spending fell at a slower pace, a tentative sign that a robust labor market is lending support to domestic demand.
"The labor market has been improving for a while now, and this is starting to lift consumer sentiment," said Hiroshi Miyazaki, senior economist at Mitsubishi UFJ Morgan Stanley Securities.
"I expect consumer spending to pick up pace in the future. People are also buying more household goods because the Bank of Japan's monetary easing has sparked an increase in real estate investment."
Japan's unemployment rate has been falling partly due to its shrinking labor force and a shortage of workers in construction, healthcare and hospitality. The seasonally adjusted unemployment rate in October was 3.0 percent, unchanged from the previous month and in line with economists' median estimate.
The jobs-to-applicants ratio rose to 1.40 from 1.38 in the previous month to reach the highest level since August 1991, separate data showed on Tuesday. The median estimate was for the ratio to rise to 1.39.