Japan Sees 2.8 Percent Drop in Real Wages
The Ministry of Health, Labor and Welfare reported that total cash earnings per worker—encompassing base salaries and overtime compensation—increased a mere 0.5 percent year-over-year to reach 310,202 yen (approximately 1,980 U.S. dollars). This represents the weakest nominal wage expansion recorded since December 2021.
Consumer prices surged 3.3 percent throughout November, substantially outpacing earnings growth and continuing to diminish actual purchasing power, the statistics revealed.
Persistent elevation in food and energy costs has maintained inflation-adjusted real wages—a critical measure of consumer buying capacity—in negative range for close to twelve months, even as nominal compensation has shown modest increases.
The Bank of Japan is expected to scrutinize upcoming spring wage negotiations closely, viewing them as a pivotal signal for determining the trajectory of future interest rate adjustments following last month's policy rate increase to a three-decade peak.
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