US EditionJapan's Real Wages in May Fall 2.9%, Sharpest Drop in Nearly 2 Years
- In May 2024, Japan experienced a 2.9% decline in real wages compared to the previous year, representing the largest decrease in almost two years nationwide.
- The decline followed persistent inflation driven by rising food prices, while nominal wages grew only 1.0%, slowing from earlier gains.
- Major Japanese firms offered wage increases averaging around 5.25% during this spring's labor negotiations, but smaller companies, which employ the majority of workers, have been slower to boost pay.
- Sota Takano, senior economist, noted this report shows people struggling with living costs, calling it "a discouraging result for Ishiba" ahead of elections.
- The wage drop challenges policymakers' goals for sustained economic growth and complicates the ruling coalition's outlook as it prepares for the July 20 election.
11 Articles
11 Articles
[NHK] The total amount of cash wages per worker in May this year increased by 1.0% compared to the same month last year, marking the 41st consecutive month of increase. However, due to price…
Kyodo News+
Mainichi ShimbunJapan's real wages in May fall 2.9%, sharpest drop in nearly 2 years
Japan's real wages fell 2.9 percent in May from a year earlier, marking the fifth consecutive monthly decline and the sharpest drop in nearly two years, as pay growth continued to lag behind persistent inflation, government data showed Monday.
According to the Ministry of Health, Labor and Welfare's Monthly Labor Survey for May (preliminary results, for those with 5 or more employees) released on the 7th, real wages, excluding the effects of price fluctuations, decreased by 2.9% compared to the same month last year. This marks the fifth consecutive month of declines as wage growth has not kept up with rising prices. The decline was the largest since September 2023. Total cash wages pe…
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