Japan's Real Wages Rise for 7 Consecutive Months... Nominal Wages Also Up

Real Wage Growth Reaches 2.4% in July

Japan's real wages have increased for the seventh consecutive month. Real wages refer to the actual value of wages received by workers, adjusted for inflation, reflecting the amount employees truly feel in their incomes.

Prices are marked on products displayed in a store in Tokyo, Japan. Photo by Reuters and Yonhap News Agency

According to preliminary results of the July Labor Statistics Survey released by the Ministry of Health, Labour and Welfare of Japan on September 8, real wages per capita at business establishments with five or more employees, adjusted for price fluctuations, rose 2.4% compared to the same month last year. The slowdown in inflation is identified as the key factor driving the increase in real wages in July. This marks the seventh consecutive month of growth.

During the same period, the consumer price index rose 2.2%, a lower level compared to the 3.6% increase in July of the previous year. Rice prices, which had surged until last year, have recently declined, and the Japanese government has curbed gasoline prices through subsidies.

The total cash earnings in July, which represent nominal wages, amounted to 436,401 yen (approximately 3,762,500 won), a 4.7% increase compared to the same month last year. Nominal wages have shown a growth rate of over 3% for six consecutive months. This marks the first time in 34 years and four months that Japan's nominal wage growth has exceeded 3% for six consecutive months.

However, factors increasing the burden on Japanese households remain, such as the continued instability in the Middle East. According to a market research firm, Teikoku Databank, about 4,900 food and beverage items are scheduled for price increases next month.

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