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The jobless rate in Japan came in at a seasonally adjusted 2.9 percent in June, the Ministry of Internal Affairs and Communications said on Friday.
That was beneath expectations for 3.0 percent, which would have been unchanged from the May reading.
The jobs-to-applicant ratio was 1.13, well above expectations for 1.10 and up from 1.09 in the previous month.
The participation rate was 62.4 percent, up from 62.2 percent a month earlier.
