Japan's May Wages Rise 3.2%, Marking Longest 3% Streak Since 1992
Updated
Updated · The Japan Times · Jul 7
Japan's May Wages Rise 3.2%, Marking Longest 3% Streak Since 1992
3 articles · Updated · The Japan Times · Jul 7
Summary
Nominal wages in Japan rose 3.2% in May from a year earlier, extending a run of 3%-plus gains to four straight months even though the increase was slower than April’s revised 3.6%.
Inflation-adjusted cash earnings climbed 1.4%, the fifth consecutive monthly gain, showing pay growth continued to outpace prices and supporting the Bank of Japan’s case for further rate increases.
Base pay increased 3%, while a steadier measure excluding bonuses and overtime rose 2.4% for full-time workers, suggesting underlying wage momentum remained intact.
The four-month streak is Japan’s longest stretch of 3%-plus nominal wage growth since 1992, underscoring a labor-market shift the BOJ has been watching for durable inflation.