Nominal wages in Japan rose by 3% year-on-year in November 2024
Nominal wages in Japan rose by 3% year-on-year in November 2024, marking an acceleration from the 2.6% increase seen in October and surpassing market forecasts of 2.7%. However, real wages—adjusted for inflation and a key indicator of consumers' purchasing power—fell by 0.3% year-on-year in November. This follows a 0.4% decline in October and represents the fourth consecutive month of negative real wage growth, despite base pay rising at its fastest pace in over three decades. These figures complicate the outlook for the Bank of Japan's monetary policy, as the central bank has stressed that broad-based wage increases are essential to justify raising borrowing costs. Looking ahead, Japanese companies are expected to raise wages by approximately 5% in 2025, matching the increases seen in the previous year. source: Ministry of Health, Labour and Welfare, Japan(Cay)
source: trading economi
