Japan's jobless rate declined to a ten-month low in January, as the economy added hundreds of thousands of employment opportunities.

The Tokyo-based agency revealed that the national unemployment rate dropped to 4.9 per cent from 5.2 per cent in December as the Japanese economy saw the most jobs created in more than 30 years.

Specifically, more than 540,000 employment opportunities were created in January, which is the highest figure recorded since October 1973.

The Labor Ministry also disclosed that the job-to-applicant ratio rose to 0.46, meaning that there are 46 positions for every 100 candidates.

Masamichi Adachi, economist at JPMorgan Chase in Tokyo, claimed that this rise could be an anomaly over the course of 2010.

He told Bloomberg: "I don't think we'll continue to see these kinds of improvements in the months ahead. Companies aren't at a point where they need more workers."

Earlier this month, the Japanese lower house passed a trillion-dollar budget that will add to an already bulging public debt mountain in an effort to stimulate the country's economy.