Japan’s economy is on the rebound.

The nation’s unemployment rate for December dipped to 3.7 percent.

That’s down 0.3 percent from November and the lowest it’s been since December 2007.

But Japan’s Ministry of Internal Affairs cautions the overall workforce is decreasing, and the drop in joblessness may reflect a rise in the number of people who have simply given up looking for work.

On the other hand, Japan’s Labor Ministry says there are 1.03 jobs for each job seeker, a ratio that improved for the third month in a row.