Japan's wages up 3%, real wages down for 4th month

Nominal wages in Japan rose 3% year-on-year in November 2024, accelerating from the 2.6% increase in October and surpassing market expectations of a 2.7% gain.

Japan's wages up 3%, real wages down for 4th month

However, real wages—adjusted for inflation and a key indicator of consumers' purchasing power—fell by 0.3% year-on-year in November, following a 0.4% decline in October. This marks the fourth consecutive month of negative real wage growth despite base pay rising fastest over three decades. These developments present challenges for the Bank of Japan’s monetary policy, as the central bank has emphasized that broad-based wage growth is crucial for justifying any rate hikes.

Japanese companies to raise wages 5% in 2025

Japanese companies are expected to increase wages by around 5% in 2025, maintaining the same pace as the previous year.