Real Wages in Japan Drop for Second Consecutive Year Despite Rising Cash Earnings

TOKYO, Feb 06 (News On Japan) - In 2023, the Japanese workforce faced a paradoxical economic situation where, despite a continuous increase in gross cash earnings for the third year, real wages—adjusted for inflation—declined for the second consecutive year. The Ministry of Health, Labour and Welfare's preliminary data reveals that the average monthly cash earnings per worker, including base pay and overtime, was ¥329,859. This marked a 1.2% increase over the previous year and represented the third successive year of growth.

Notably, the component of wages known as "scheduled cash earnings," which includes base pay, witnessed a 1.2% rise from the previous year, reaching a growth rate not seen in 27 years. The Ministry attributes this trend to the outcomes of the spring wage negotiations and the impact of labor shortages.

However, the rise in wages has not kept pace with inflation, resulting in a 2.5% decline in real wages from the previous year, marking a continued decrease for the second year. Additionally, December of the same year saw real wages fall by 1.9% compared to the same month in the previous year, extending the sequence of declines to 21 consecutive months.

This ongoing decline in real wages underscores a growing concern for Japanese workers, whose salary increases are insufficient to offset the effects of rising prices, effectively reducing their purchasing power. The situation highlights the challenges faced by the Japanese economy in balancing wage growth with inflationary pressures.

Source: TBS

Why Did a Wooden Home in Tokyo Collapse?

A two-story wooden house collapsed in Tokyo’s Suginami Ward on the night of September 30th, with experts suggesting that the ground beneath the property, rather than the building itself, gave way, likely due to a cracked retaining wall.

Hokkaido Saw Record-Breaking Rainfall in Just Six Hours

Heavy rainfall battered parts of Hokkaido, with some areas receiving more than a month’s worth of precipitation in only six hours, prompting flood warnings and evacuation advisories. Meteorologists are saying the downpour was the result of a combination of unstable atmospheric conditions and moist air flowing in from the sea.

Kamakura Introduces Bathing Tax to Tackle Overtourism

Kamakura City in Kanagawa Prefecture has approved the introduction of a bathing tax, but the measure is drawing strong criticism from local hot spring operators since only two facilities fall under the new levy.

Osaka Introduces First Nationwide Cap on ATM Transfers

Osaka Prefecture has revised its ordinance to set a cap of 100,000 yen per day on ATM transfers made with cash cards by certain elderly account holders, marking the first such restriction in Japan.

Shinjiro Koizumi Mass Resignation Scandal in Kanagawa

A bombshell report has surfaced in Kanagawa Prefecture, the political base of Shinjiro Koizumi, where as many as 826 members of the Liberal Democratic Party aligned with the Takaichi faction were treated as having resigned from the party without their consent, according to an investigation by the weekly magazine Bunshun.

MEDIA CHANNELS

MORE Business NEWS

Forever 21 to Exit Japan for Third Time

Forever 21, the American fast fashion brand that once led a global boom in affordable clothing, has decided to withdraw from Japan for the third time after its US parent company filed for bankruptcy and supply from the United States came to a halt.

Japan Faces 200 Yen Vending Machine Drinks

The wave of price increases continued into October, with more than 3,000 items, including beverages and food, set to rise in price, leaving supermarkets and retailers grappling with how to respond.

Japan's Minimum Wage Breaks 1,000 Yen Barrier

From October, Japan’s minimum wage will rise across the country to exceed 1,000 yen for the first time, a development welcomed by workers but one that is expected to squeeze retailers such as discount supermarkets where higher personnel costs could lead to losses.

NTT to Raise Landline Basic Fee for First Time in 30 Years

NTT, which had previously announced plans to gradually phase out fixed-line metal cables over the next decade, said at a briefing on September 30th that it will raise basic charges from next fiscal year to temporarily maintain the service.

Osaka Office Rents See World’s Fastest Growth

Office rents in Osaka are rising at the fastest pace in the world, driven by a wave of new developments in Umeda such as the recently opened Grand Green Osaka, which has brought fresh momentum to the city’s commercial real estate market.

Cyberattack Halts Asahi Shipments, Production and Events

Asahi Group Holdings said on September 29th that a cyberattack had caused a major system failure which has yet to be restored and shows no signs of resolution, with the impact now spreading across its operations even as the company stressed that no leaks of personal information or customer data have been confirmed.

FamilyMart Bets Big On Ohtani Ads

FamilyMart has put Shohei Ohtani at the center of its latest push, casting the global baseball star in a nationwide TV campaign tied to a revamped onigiri line. During a two-hour shoot in Los Angeles in December, Ohtani—whom President Kensuke Hosomi describes as soft-spoken and “sun-bright”—sampled 19 rice balls and even asked to take the leftovers home.

Kidults Drive Japan’s Toy Market

A toy trade fair was held in Osaka ahead of the year-end shopping season, bringing together 84 manufacturers from Japan and abroad who showcased products ranging from educational toys to collectibles.

< 2 3 4 5 >