Japan's Jan jobless rate rises as curbs for Covid-19 hit service sector

World's third-largest economy faces downside pressure from record coronavirus deaths and the Ukraine crisis.

Japan's jobless rate rose to 2.8% as the surge in coronavirus infections and mobility curbs hit service sector activity, although a gauge of job availability grew to a 21-month-high in January, government data showed on Friday.

The mixed data came as firms in the world's third-largest economy conclude annual labour talks, while downside pressure from record coronavirus deaths and the Ukraine crisis overshadow the recovery outlook.

"The COVID-19 outbreak continued to halt economic activity in February, partly lingering in March, which is not good for the current employment situation," said Takumi Tsunoda, senior economist at Shinkin Central Bank Research Institute.

The seasonally adjusted