Japan’s real wages fall 2.8% in November, down for 11th straight month
Japan’s real wages in November dropped 2.8 percent year‑on‑year, marking the 11th consecutive monthly decline and the steepest fall since January 2025, government data showed Thursday, Qazinform News Agency cites Kyodo.
The Ministry of Health, Labor and Welfare said inflation‑adjusted wages fell as a 3.3 percent rise in consumer prices outpaced a modest 0.5 percent increase in nominal wages, which averaged 310,202 yen (1,980 US dollars).
Persistently high food and energy costs have kept real wages — a key measure of consumer purchasing power — in negative territory for nearly a year, despite nominal wages rising for 47 consecutive months.
Nominal wage growth slowed from a revised 2.5 percent increase in October, weighed down by a sharp 17 percent drop in special earnings, which officials described as a volatile component.
The Bank of Japan is expected to closely monitor this spring’s wage negotiations as a key factor in determining the pace of future interest rate hikes, after raising rates last month to a 30‑year high.
Officials said December figures, which include winter bonuses, will provide a clearer picture of wage trends. In 2024, real wages posted year‑on‑year gains in June, July, November, and December, coinciding with bonus payments.
