It's programmed that way, in many hybrids they hold recirc so that the air con compressor doesn't have to work as hard cooling outside air. As a result fuel economy is improved a bit.
The Jazz recirc does seem to operate more than most, but it's not 100% recirc as it is still letting some outside air in.
What I have found is that I have to change the temperature manually on auto depending on the weather outside.
In the winter I set 20 degrees and that provides warmth, but in the summer it doesn't seem to cool enough/is a bit stuffy so I drop it to 19 degrees instead.