business

Japan wage growth hits 21-year high

35 Comments
By Leika Kihara and Stanley White

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35 Comments
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Yeah, the highest growth in 21 years, which means bugger all when you consider salaries have been dropping for the last 21 years. Most salaries are 10-15% lower than they were 15 years ago and they are boasting about a 1% increase? You people who call this good news really need to take the blue pill and check reality.

14 ( +15 / -1 )

Pathetic, shrinking workforce and it's based on a one off summer bonus very few received. And its all "fantastic" news...but in 21 years its the best. In 21 years 21 there has been so little growth in wages. Actually wages have shrunk for most but the growth for a few screwed the result. Abenomics at work the golden shower theory.

13 ( +14 / -1 )

Excellent news and am definitely seeing very high wage growth in my industry this past year. Highest in 21 years, very impressive

Could you share which industry you are in? Not seeing any wage growth in mine so would love to know where its all happening.

12 ( +13 / -1 )

It will be interesting to see what pay rise we get this year, as it is supposed to be based on the average increase received by other workers. I expect they will change the formula if they have to pay out more than the 0.2% we have been getting in recent years. This year my take home pay is lower than last year due to an increase in the local income tax. Previously it went down because of increases in the pension. I think the old age care insurance is also going up this year, along with a new levy to employ ex-bureaucrats in the name of conserving forests. These factors explain why consumer spending is down even though wages might have gone up.

11 ( +12 / -1 )

I don’t know of ANYONE receiving more money this year!

Which industries are showing growth?

Not at all mentioned in the article

I call bs on this article....

11 ( +13 / -2 )

Local taxes have gone up, as well as pension payments. Recently the amount companies pay for dependents has been cut, so any pay raise we got, was erased and I am getting less than I was this time last year.

I get so tired or reading Gambare Japan's posts. They are so fake. Now that is real fake news.

10 ( +12 / -2 )

Oh.... propaganda aside, this bleep in the economic vein isn't going to amount to much. It's sole purpose is to keep Abe in power till the Olympics. After which, zeus help us all

9 ( +12 / -3 )

What a joke. When there is only one PM left employed, his salary will be sky high. Does it make any sense ?

9 ( +11 / -2 )

Yet another article that could have been written by Abe/Kuroda BOJ hacks.

Almost every paragraph presents inflation -- that is, a decline in the purchasing power of everyone's money -- as the real goal of everything, rather than lower prices (which would enable people to purchase more and better goods) or even employment.

Rising wages with no rise in consumer prices is unmitigatedly good for every worker in every society, including Japan -- but you'll never hear that from the BoJ sycophants who write these articles.

9 ( +11 / -2 )

statistical outliers skew statistics!

8 ( +10 / -2 )

People who are dreaming with Abenomics, end of the road and wake up! All of what happening now can be Abe administration, or any other party will do the same with the economic experts, Japan always has to find ways to go forward. The problem always is: The wages for citizens and residents are growing? For me it's the same of 15 years ago and people stay calm saying gambare Japan!?...and bonuses will change every year only to check past statistics. What Abe govt. has to decide is; are we going more Americanized ways of living or find ways to be much Japanese? All of what I see in Japan's economy is very Americanized but the national govt. wants it Japanese ways to citizens don't depend govt. supports...Wait a minute! Can you imagine what is really going on in Japan? A task to Abe supporters!

7 ( +8 / -1 )

Personally none of the people I know had any wage growth at all. In fact several working in different industries have been asked to work longer (for free) or had their wages reduced for the benefit of the company's they work for. 21 year high that alone is such a sad thing to celebrate.

6 ( +6 / -0 )

The key concept here is "average"., which by definition means that some get more increase and some get less increase. In Japan, the people who get paid very high normally also get increase at much higher percentage. Fair game, isn't it ? To them, of course.

6 ( +8 / -2 )

who believe **

6 ( +7 / -1 )

The wage increase means nothing because it gets cancelled by the inflation of consumer prices. It doesn't matter if you get paid 10% more, if the consumer prices now cost 10% more. The only result of the inflation is to kill the savings, which in tern kills the capital investment, which means less investment in productivity, less loans for new businesses or expansion of existing businesses.

I would appreciate if JT publish the latest figures on capital investment and savings.

6 ( +8 / -2 )

Everyone knows this is not across the board.

A few "chip" industries & bonuses create a false playing field if ever there was. This article presents no evidence of the majority of ordinary citizens lives benefiting from some miraculous wage rise.

For those that think this is great news and are bowing down to lord Abe, I challenge you to print this story & comments out, stick it on your fridge and look at it at least once a week over the next coupla years and report back.

I'm doing it. I won't forget.

6 ( +8 / -2 )

Excellent news and am definitely seeing very high wage growth in my industry this past year. Highest in 21 years, very impressive

5 ( +14 / -9 )

Some think Japanese wage rise because they are risi'g outside lol.

Just bonuses punctual increase.

5 ( +7 / -2 )

Is it April 1st? Because this story is a bit of a joke!

5 ( +7 / -2 )

real wages rose at their fastest pace in more than 21 years thanks to higher summer bonuses

Real wages? Bwahahaha! 60% of workers are on short-term working contracts with no bonuses. There may very well have been increases in salaries in the corporate full time sector (40% of workers), but it's at the expenses of the other 60% who are getting screwed with lower salaries and no job security! More smoke and mirrors BS from Abe and his cronies.

4 ( +19 / -15 )

Yes, the 1%'s summer bonuses alone pushed these numbers up. The class gap just gets wider and wider.

4 ( +15 / -11 )

Household spending fell 1.2 percent in June from a year earlier, government data showed, marking the fifth straight month of declines. But the fall was smaller than market forecasts of a 1.6 percent slide and a 3.9 percent drop in May.

Funny how the forecast rise is only reported after the fact to support the impression that there is somehow good news in the drop being lower than expected.

Not to mention that household spending will stay down if the people holding the purse strings dont see a steady rise in wages, MONTHLY wages, and not the temporary bonuses.

Bonuses are a thing of the past for far too many, and the major businesses that do still pay them to their shrinking full time employees are skewing the numbers for the rest of the workforce and statistics. If there are less people getting a bonus and the bonuses rise, then of course their will be a blip of an increase as those not receiving one are not counted.

4 ( +6 / -2 )

why do we need a govt ?

For fiscal policy, regulation, etc. Developments in those areas have generally been positive over the last few years in Japan.

His government is in bed with business and those boardrooms you talk about,

We must be reading different news reports. I've been reading how Abe has been making many very public calls urging companies to allocate more of their record profits on wages and other employment issues -- like better daycare and getting more women in professional positions -- rather than hoarding their corporate loot.

Check it out. I recommend Google search.

4 ( +6 / -2 )

Great to hear more good economic news! Well done!

3 ( +14 / -11 )

Makes sense, everyone is being paid a lot more these days. Just hoping it doesn't spur too much inflation..

3 ( +11 / -8 )

Real wages? Bwahahaha! 60% of workers are on short-term working contracts with no bonuses. There may very well have been increases in salaries in the corporate full time sector (40% of workers), but it's at the expenses of the other 60% who are getting screwed with lower salaries and no job security! More smoke and mirrors BS from Abe and his cronies.

Actually the figure of regular [ full-time ] workers is 44 % of the labor force and non-regular [vast majority women] 56%.

The article shows an actual overall raise in percentage on a monthly basis so on a yearly basis it wouldn't be that much. It is a worldwide trend that wages stay the same despite thriving economies, or better was, as the first signs of rising wages are to be found in Western-European countries and Trumpists believe that promises become reality in the US.

The shift to non-regular jobs at the cost of regular jobs is a global trend too. Not only that young people face temp contracts with no sight on a full time job but also foreign 'knowledge workers' moving in on contract basis [months or years] such as Indian IT workers replacing whole corporate IT departments worldwide, also in Japan.

To blame Abe is too simple as one can better blame the Corporate World for outsourcing jobs. Outsourcing is not bad as it gives flexibility but not at the cost of too many full-time

contracts, often people who work there for ages.

In Australia, country of origin for many posters here, full time jobs declined in 2017 to 49.97% of the labor force.

3 ( +4 / -1 )

Honestly speaking, Japan isn't the third largest economy anymore, based on PPP. Call it a growing economy if you believe in Abe.

1 ( +5 / -4 )

Honestly speaking, Japan isn't the third largest economy anymore, based on PPP. Call it a growing economy if you believe in Abe.

Some small boys didn't get a raise for more than a decade, that's sad indeed :)

1 ( +6 / -5 )

It's hilarious at the amount of venom and spite from some here to this incredible economic news, almost as if they wish to see the economy tank.. Obviously language teachers and other unskilled workers won't be seeing wage increases, they don't deserve it due to no value being contributed to the economy.

Value adders to the economy however are seeing large wage increases and are well deserved. It's time to stop coddling the low value workers

1 ( +6 / -5 )

it's just a PR scheme to keep Abe in power. It has no meaning to people

0 ( +5 / -5 )

JeffLee, if the govt isn't responsible, why do we need a govt ?

0 ( +5 / -5 )

 "...but it's at the expenses of the other 60% who are getting screwed with lower salaries and no job security! More smoke and mirrors BS from Abe and his cronies."

Why do so many people blame Abe (or Kuroda) for low wages and working conditions? Decisions directly affecting those issues are made in the boardrooms of private-sector companies, not in Kasumigaseki.

The aggressive fiscal and monetary policies over the last few years have turned a shrinking economy into a growing one. (although the inflation plan has fallen short). Put blame where blame is due. Have y'll been drinking the corporate kool-aid?

-2 ( +4 / -6 )

Why do so many people blame Abe (or Kuroda) for low wages and working conditions? Decisions directly affecting those issues are made in the boardrooms of private-sector companies, not in Kasumigaseki.

I don't just blame Abe, I also blame the LDP for supporting him and his policies as well. His government is in bed with business and those boardrooms you talk about, are receiving a grunt load of tax money as well. They are in bed with Abe in creating and implement policies that have made them even fatter, without having any responsibility to pass it down to their employees.

Working conditions...dont get started here, you have a government that is creating laws to limit overtime to 100 freaking hours a month and you dont find anything wrong with that? (Only one example) And that was due to a backlash against "private -sector" companies killing their employees with work.

SO Abe isnt responsible in any form to you?

Abe is the head of the snake, but sadly in the case of the LDP it's a Hydra with about 400 different heads.

-2 ( +4 / -6 )

Obviously language teachers and other unskilled workers won't be seeing wage increases, 

Never saw the link with unskilled but recently I had a 'discussion' with one about the meaning of the word 'aristocracy' which was pretty hilarious :)

-2 ( +0 / -2 )

Amazing news! Another boost for the economy, courtesy if Abenomics. Thank-you PM Abe thank you!!

-6 ( +16 / -22 )

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