Japan’s real wages fall in November at sharpest pace in 8 years

Japan’s inflation-adjusted average monthly wage fell 3.8 percent in November amid rising food and energy prices, marking the steepest drop in eight years and six months and declining by eighth consecutive month, the Labor Ministry said on Friday.

While Prime Minister Fumio Kishida’s government has asked companies to raise wages to match inflation to create a positive growth cycle, preliminary figures from the ministry’s monthly labor survey show that price increases following the invasion of Ukraine by Russia continue to increase. exceed wage increases.

Wage increases are expected to be the main focus of the country’s next annual edition shunt spring wage negotiations between management and workers.

Average total cash earnings per worker in November, including base pay and overtime, rose 0.5 percent to 283,895 yen, extending gains to an 11th straight month.

But the rate of increase fell below 1 percent for the first time in 2022, weighed down by a 19.2 percent drop in bonuses and other special compensation payments.

Average basic pay and other scheduled wages rose 1.5 percent to 249,550 yen, while overtime pay and other non-scheduled wages rose 5.2 percent to 19,566 yen.

By sector, food services saw the largest increase in gross monthly cash wages with a 5.6% increase to ¥124,340, while education saw the biggest drop, down 3.5% to ¥124,340. to 295,139 yen.

Average monthly wages for full-time workers rose 0.2 percent to 368,358 yen, while those for part-time workers rose 2.2 percent to 101,888 yen.

Total hours worked fell 0.2 percent to 139.1 hours, declining for the second month in a row.


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