Japan Real Wages Fall for 5th Month in May

Tokyo, July 7 (Jiji Press)--Real wages in Japan dropped 2.9 pct from a year earlier in May, extending their losing streak to five months amid food price spikes, a labor ministry report showed Monday.
 

The inflation-adjusted wage drop at companies with at least five employees was the largest since September 2023, reflecting faster growth chiefly in food prices than that in wages, people familiar with the matter said.
 

The report also showed that nominal wages rose 1.0 pct to 300,141 yen per worker, up for the 41st straight month. Regular salaries increased 2.1 pct, but an 18.7 pct tumble in extraordinary pay, such as bonuses, limited the overall wage growth. Full-time workers were paid 384,696 yen on average, up 1.1 pct, and part-timers 112,440 yen, up 3.5 pct.
 

The ministry said the consumer price index climbed 4.0 pct in May when imputed rent was excluded to calculate the real wage index, compared with a 3.5 pct rise in the comprehensive CPI in the same month.
 

When the rent was factored in, Japan's internationally comparable real wages declined 2.4 pct, it added.
 

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