KPL
(KPL/KYODO) Japan's real wages fell 2.9 percent in May from a year earlier, marking the fifth consecutive monthly decline and the sharpest drop in nearly two years, as pay growth continued to lag behind persistent inflation, government data showed Monday.
(KPL/KYODO) Japan's real wages fell 2.9 percent in May from a year earlier, marking the fifth consecutive monthly decline and the sharpest drop in nearly two years, as pay growth continued to lag behind persistent inflation, government data showed Monday.
The latest decline in real wages -- a barometer of consumer purchasing power -- accelerated from a revised 2.0 percent fall in April and marked the largest drop since September 2023 due largely to lower bonuses, the Ministry of Health, Labor and Welfare said.
Nominal wages, or the average total monthly cash earnings per worker including base and overtime pay, grew 1.0 percent to 300,141 yen ($2,000), rising for the 41st straight month.
Japanese companies agreed to raise wages by an average 5.25 percent at this year's spring pay negotiations, marking the second straight annual increase of over 5 percent, according to the country's largest trade union confederation.
But consumer prices rose 4.0 percent in May, driven by higher rice and other food costs, keeping real, or inflation-adjusted, wages in negative territory.
Average wages in the reporting month were weighed down by lower special earnings, including bonuses and transportation allowances, which dropped 18.7 percent to 12,595 yen.
A ministry official attributed the decrease in special earnings to a sharp swing in bonuses as fewer workplaces made such payments in May.
While special earnings were projected to increase as many companies paid bonuses in June, it is unclear whether it would help real wages to expand, the official said.
Last year, inflation-adjusted wages posted year-on-year rises in June, July, November and December, when many companies paid bonuses.
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