Largest Decline in Two Years
Real wages for Japanese workers have continued to decline for five consecutive months.
According to the "May Labor Statistics Survey (preliminary figures)" released by Japan's Ministry of Health, Labour and Welfare on July 7, the average nominal wage per worker at companies with five or more employees was 301,041 yen per month (approximately 2,847,000 won), up 1.0% from the same month last year. This marks the 41st consecutive month of nominal wage growth.
However, real wages, which reflect changes in consumer prices, have actually decreased. Real wages, adjusted for price fluctuations (excluding imputed rent for owner-occupied housing), fell by 2.9% compared to a year earlier, marking a decline for the fifth consecutive month. Notably, the rate of decline in real wages was the largest since September 2023. The Ministry of Health, Labour and Welfare stated, "The widening decrease in real wages appears to be influenced by rising prices as well as bonuses," and added, "We intend to closely monitor future trends."
In May, the Japanese government set a major policy goal of achieving a real wage growth rate of around 1% by 2029.
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