Real Wages in Japan Continue to Decline

Jul 07, 2025 | News On Japan

TOKYO - Rising prices continue to erode household income despite nominal wage increases. According to the Ministry of Health, Labour and Welfare’s Monthly Labour Survey for May, inflation-adjusted real wages per worker fell by 2.9% compared to the same month last year, marking the fifth consecutive month of decline. This represents the steepest year-on-year drop since September 2023.

While nominal wages, reflected in total cash earnings, did increase, the pace of wage growth has been insufficient to offset the ongoing rise in consumer prices, leaving workers effectively worse off.

Source: テレ東BIZ

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