Rising Wages No Match for Inflation... 55% of Japanese Households Say "Life is Difficult"

Average Household Income Jumps to 52.9 Million Won, Largest Increase on Record
Single-Person Households Now at All-Time High, Making Up 35.4% of Total

Although the average income of Japanese households recorded the largest increase ever due to the effect of wage hikes, more than half of households still report difficulties making ends meet as a result of the ongoing high inflation.

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According to the "2025 National Livelihood Survey" released by Japan’s Ministry of Health, Labour and Welfare on July 15, 2024, the average household income in 2024 rose by 7.3% from the previous year to 5,752,000 yen (approximately 52.9 million won). This represents the largest rate of increase since such statistics began in 1986. However, the average income still fell short of the all-time high of 6,642,000 yen (about 61.1 million won) recorded in 1994.

The median income, which is the income of the household in the exact middle when all households are lined up by income, reached 4 million yen (about 41.5 million won), an increase from the previous year's figure of 4 million yen. In response, a Japanese government official explained, "The impact of wage increases has been reflected."

However, the proportion of respondents who answered that "life is difficult" was 55.4%, a 4.1 percentage point rise compared to the previous comparable survey in 2022. While wages have increased, it appears that the steep rise in prices has prevented households from truly feeling an improvement in their living conditions.

There were also clear changes in household structure. The number of single-person households reached 19,477,000, accounting for 35.4% of the total, marking all-time highs both in terms of number and proportion.

The average income of elderly households recorded an all-time high at 3,361,000 yen (about 30.9 million won), while households with children also reached a record 8,573,000 yen (about 78.9 million won).

Nikkei reported that "the long-term decline in household income has been curbed as more elderly people and women have joined the labor market, and growth has continued over the last two years."

This content was produced with the assistance of AI translation services.