TOKYO (AP) — Japan reports that its factory output rose in May from a year earlier, while the unemployment rate also edged higher.

Despite the higher jobless rate, Friday's report showed the number of jobs per job seekers rising to its highest level in 43 years. The government said the unemployment rate rose to 3.1 percent from 2.8 percent in April as workers quit to seek new jobs in a labor-short market.

Meanwhile, higher oil prices pushed the inflation rate in May to 0.4 percent.

Surging exports to the rest of Asia have helped Japan's recovery. The 6.8 percent year-on-year increase in factory output was the seventh straight month of gains.

However, output fell 3.3 percent in May from the month before, as transport equipment production fell, partly due to a national holiday.