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Japan's real wages in March fall 2.1% on year, down for 3rd month

35 Comments

Japan's real wages in March fell 2.1 percent from a year earlier, marking the third consecutive monthly decline, as income growth continued to fall behind price hikes, government data showed Friday.

Nominal wages, or the average total monthly cash earnings per worker including base and overtime pay, increased 2.1 percent to 308,572 yen, rising for the 39th straight month, the Ministry of Health, Labor and Welfare said.

But consumer prices, used to calculate the pay data, grew 4.2 percent in the reporting month, driven by higher rice and other food prices, although the pace slowed from a 4.3 percent rise in February, according to the ministry.

Separate data showed the country's household spending in March rose a real 2.1 percent from the year before.

Households of two or more people spent an average of 339,232 yen in the reporting month, according to the Ministry of Internal Affairs and Communications.

The data is a key indicator of private consumption, which accounts for more than half of Japan's gross domestic product.

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Not o ly for 3 months, but more like for 5 years, month after month. This coincided exactly when the time the JPY currency crashed, or was made weak on purpose by the government.

And that is the reasons the corporations made record profits in those past 5 years, profits they NEVER reinvested in their working force...

-17 ( +5 / -22 )

And no intelligent person is the least bit surprised.

-9 ( +4 / -13 )

Lower wages and higher prices!

At this rate Japan will be a 3rd world nation!

Wait a minute…

-12 ( +4 / -16 )

Some people didn’t read the article lol!

-11 ( +1 / -12 )

Very confusing wording - do you mean the third consecutive month of YoY declines or the third consecutive MoM decline? I guess the former, but as another reader has pointed out the YoY declines have been going on for tens if not scores of months. The December anomaly must have been due to winter bonuses

-6 ( +1 / -7 )

I first moved to Japan in 2001. Wages have decreased by 20-30% since then and the cost of living has increased by around the same. As a result, I don’t live in Japan anymore

-2 ( +6 / -8 )

Ship's sinking fast, as falling wages means only two things, shrinking economy and depopulation acceleration

-6 ( +5 / -11 )

Greedy Wholesalers and retailers are taking full advantage of the so called Inflation, sucking the oxygen out of every aspect of life in the name of inflation and the government is standing by doing NOTHING.

Everyone is jumping on the bandwagon ripping consumers off any way they could blaming Inflation when it has not been the real cause.

The real cause is GREED $$$$ as always.

-8 ( +2 / -10 )

""Lower wages and higher prices!

At this rate Japan will be a 3rd world nation!""

Many nations been their before and the outcome was Horrible.

If things continue at this rate the so called Middle Class will soon VANISH, then we will have two Classes of people Ultra Rich and the Very Poor.

-7 ( +4 / -11 )

Japan's economy FAR too dependent upon auto industry, now in twin crisis of US tariffs and China EV upstarts, so everyone panicking, par for the course

-11 ( +2 / -13 )

They could do with a tax break courtesy of abolishing tax free shopping for non residents.

-3 ( +3 / -6 )

Japan's already the poorest G-7 country on a GDP per capita basis, so another 2.1% drop is no biggie!

-11 ( +3 / -14 )

The good news is that eventually Japan will hit rock bottom, as we're getting closer every day!

-10 ( +4 / -14 )

Can see it now, as US trade negotiations are winding down, Trump steps into the room and says...

"Your wages keep falling, so just what the heck can anyone buy in Japan these days? Therefore, we need more concessions, as your market is shrinking too fast!"

-12 ( +1 / -13 )

Can people survive on a salary that low?

1 ( +4 / -3 )

If you're over 30 and still taking home a salary that low, you're doing something wrong.

0 ( +3 / -3 )

Real wages have fallen for three consecutive months over the same period in 2024. Nominal wages have lagged behind cost-of-living increases for 39 consecutive months.

Per https://www.tokyo-np.co.jp/article/403665

-4 ( +1 / -5 )

If you're over 30 and still taking home a salary that low, you're doing something wrong.

Meaning living in Japan? Not working twelfty gigs? Do elucidate.

-6 ( +0 / -6 )

Japan's already the poorest G-7 country on a GDP per capita basis, so another 2.1% drop is no biggie!The good news is that eventually Japan will hit rock bottom, as we're getting closer every day!

Good news indeed from someone who either doesn't live here or isn't a stakeholder and, like the flyjin of yore, can scoot when the going gets tough.

-5 ( +0 / -5 )

by 20-30% since then and the cost of living has increased by around the same.

Not rents, though, a few markets excepted.

-5 ( +0 / -5 )

At this rate Japan will be a 3rd world nation!

Wait a minute…

As an American, I suggest you visit the bananas republic for comparison.

-2 ( +4 / -6 )

The federal poverty level for a single person in the US is $15,060 net per year. (This figure has always been criticized as being artificially low, hiding true numbers of impoverished people)

If you click on some of the "teach English in Japan" eikaiwa job ads on this website, many are paying ¥220,000/month. After taxes/pension/health insurance, that comes out to $14,775 net per year.

How are people even still even doing those jobs?

-1 ( +4 / -5 )

Your wages keep falling, so just what the heck can anyone buy in Japan these days? Therefore, we need more concessions, as your market is shrinking too fast!"

We'll. Gaijin from America. Affordable housing. Nationalized health insurance. Safety. Public transport. Government services that work. For starters.

-1 ( +5 / -6 )

@@Japan Glimpsed

You watch far too much TV. The quality of life for middle class Americans is far superior to the quality of life for the middle class in Japan.

Drop a pin on a leafy street on a random city in the US; life looks pretty good.

-1 ( +4 / -5 )

Drop a pin on a leafy street on a random city in the US; life looks pretty good

When was the last time you lived in the US?

Have you ever lived in the US?

By the way, I have experience of living there and have a lot of affection and respect for the country.

0 ( +3 / -3 )

@Jimizo

Skid Row in L.A. is not America. Virtually walk the streets in Downtown Denver, Charlotte or Oklahoma City.

You will find that they are clean, tidy, and beautiful and so are their residential areas. The claim that the quality of life in the US isn't as good as in Japan is false.

-2 ( +1 / -3 )

Quality of life here far superior to many places. Including US. So. Save your crocodile tears.

Sorry buddy no tears here but thanks for your consideration

1 ( +1 / -0 )

@Japan Glimpsed

Me living in Japan the last 11 years

Regret Now where I’m living out of Japan NO REGRETS AT ALL

1 ( +1 / -0 )

If you click on some of the "teach English in Japan" eikaiwa job ads on this website, many are paying ¥220,000/month. After taxes/pension/health insurance, that comes out to $14,775 net per year.

How are people even still even doing those jobs?

Because the vast majority of people who come to work in Japan have no real skills beyond speaking their native language. They want to live in Japan because they're weebs obsessed with anime and manga, and dream of marrying a Japanese girl. Those with actual professional skills in specific fields are the minority. So they end up with no option other than teaching English. I've met several people who, lacking any other skills, stayed on as English teachers into their 40s and 50s without any career or salary progression.

2 ( +2 / -0 )

@Japan Glimpsed

We'll. Gaijin from America. Affordable housing. Nationalized health insurance. Safety. Public transport. Government services that work. For starters

We’ll other countries will first of all call you the same GAIJIN when you step foot into there country or when they will talk about you in particular,

Affordable housing they are Majority Renting Not Owning

Safety Public Transport Stabbings

Goverment Service Not All That and

for Starters Japan is not as big as you think Compared to Other Countries and they still have a hard time in life

1 ( +1 / -0 )

@Japan GlimpsedMay 9 11:19 pm JST

Quality of life here far superior to many places. Including US. 

If we're talking about cleaner streets and safety, I agree that Japan is better. However, when it comes to quality of life, Japan lags far behind Europe.

Let’s be honest: these days, when it comes to foreign workers, it's mostly people from poorer Asian countries, or anime-manga-video game enthusiasts thinking that Japan is wonderland, who still want to work in Japan. It’s no longer the attractive destination it once was.

I can compare Japan to Italy (my home country) and Ireland (where I lived and worked). I spent seven years living and working in Japan before returning to Italy in 2019.

While working in Japan, I experienced:

•   Unnecessary overtime,

•   Only 10 days of paid leave per year, with very slow increases over time,

•   Poor work-life balance.

In contrast, my work experience in Italy includes:

•   No unnecessary overtime,

•   All overtime is automatically converted into additional paid leave (e.g., every 8 hours of overtime earns me one extra day off),

•   32 days of paid leave per year,

•   The ability to work from home six days per month (increased to eight days per month from January 2025),

•   Excellent work-life balance. In Japan, I worked from 9:00 to 18:00 and got home around 19:15. In Italy, I work from 8:00 to 16:00 (8:00 to 15:00 on Fridays), and I get home in 40 minutes—leaving the whole afternoon free for my family,

•   A net monthly salary (converting to euros my previous net salary in Japan and comparing to my current salary) that is 43% higher than what I earned in Japan,

•   Significantly better housing quality compared to the small, poorly insulated homes in Japan,

•   Free national healthcare, plus private insurance covered by my employer.

The difference in quality of life is astonishing. I still spend about 1.5/2 months a year in Japan for work, and one month during my summer holidays. Thanks to my higher salary and generous paid leave, I enjoy Japan far more than most foreigners who live there year-round.

My wife is Japanese—she studied in Italy some months during her university years and was already aware of the differences between the two countries' working systems. Now, she too enjoys a more relaxed and balanced working life here. Although we both appreciate many aspects of Japan, we value the better quality of life we have now.

Yes, EU countries have their own problems and are far from perfect. I love Japan—and as I mentioned, I spend every summer there—but when it comes to salary, working conditions, and work-life balance, Europe clearly outperforms Japan.

The "strong Japan" of the 1980s and 1990s is now just a memory.

And this isn’t just my personal experience. I know around 20 people who have chosen to continue their careers outside of Japan, and they now enjoy better salaries and a higher quality of life.

0 ( +0 / -0 )

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