Japan's Real Wages Increase for Second Month

TOKYO, Sep 05 (News On Japan) - The total cash earnings received by workers in Japan increased by 3.6% in July compared to last year, marking the second consecutive month of positive growth in real wages after adjusting for inflation.

According to the "Monthly Labour Survey" released by the Ministry of Health, Labour and Welfare, the average total cash earnings received by workers in July was 403,490 yen, a 3.6% increase from the same month last year, continuing an upward trend for the 31st consecutive month.

Of this, the "scheduled earnings," which include base pay and overtime for full-time employees, increased by 2.5% to an average of 284,683 yen. This represents the highest growth since December 1994, when it rose by 2.6%, marking a 29-year and 7-month high.

The consumer price index (CPI) for July rose by 3.2% year-on-year, but the growth in total cash earnings outpaced inflation, leading to a 0.4% increase in real wages, marking the second consecutive month of positive growth.

The Ministry of Health, Labour and Welfare noted, "The effects of the spring wage negotiations are partially reflected, and similar to June, the growth in summer bonuses has also contributed. However, this may be temporary, and continued monitoring of future trends is necessary."

Source: ANN

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