Japan's Real Wages Fall 1.4% in September, Marking Ninth Straight Month of Decline

TOKYO, Nov 06 (News On Japan) - Real wages in Japan fell 1.4% in September from a year earlier, marking the ninth consecutive month of decline, as rising prices continued to outpace wage increases, according to data released by the Ministry of Health, Labour and Welfare.

Despite steady gains in pay levels, workers’ purchasing power remains under pressure amid persistent inflation.

The ministry’s survey showed that nominal wages, or average monthly cash earnings, rose 1.9% to about 297,000 yen, extending their streak of year-on-year increases to 45 months. However, the pace of growth was insufficient to offset higher living costs, resulting in a continued erosion of real income.

Summer bonuses averaged roughly 426,000 yen, up 2.9% from a year earlier, reflecting efforts by employers to boost compensation. Still, analysts note that unless wage growth accelerates further, household spending is likely to remain sluggish, posing a challenge to Japan’s fragile economic recovery.

Source: テレ東BIZ

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