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, Kyodo News quoted the Ministry of Health, Labour and Welfare as saying.
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.
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.
