Japan's real wages fall in March for record 24th month

Crying on a still high level, they should be happy and thankful that they {still) have the luxury of getting income like real wages.

The consumer price index, used to calculate real wages, climbed 3.1 percent in the reporting month, far surpassing the 0.6 percent gain in nominal wages.

24 straight months of real wage decline. Yuck!

This is the awful statistic that has come to characterize the Abe/Kishida administrations.

"The results of the 'shunto' wage negotiations were not reflected in the March data," a labor ministry official said.

And will not be reflected in wages of the population of contract workers at all.

24 straight months of real wage decline. Yuck!

Another JGovt achievement, spend more money with less result!

Don't worry Japanese will elect same party for next election, complain the same thing without any real change.

This is the consequence when a country is left under the rule of outdated ultra conservative hawkish old boys unwilling to change and adapt to modernity.

I remember the good old days when deflation was such a big problem! People had more money and spent it. But Abe and his cronies had this hairbrained idea that the country needed inflation, and this is where we are. Almost everyone I know hasn't received this 5% wage increase that is always touted, as they work for smaller companies that are being squeezed on both ends.

@Asiaman

...characterize the Abe/Kishida administrations...

They don't set most of our wages, companies do, so why blame them? Most of the fault is the private sector employers who are raking in the highest profits in their history yet refusing to share them with their workers. Both prime ministers have made repeated calls for them to give higher raises.

I do blame the govt for not hiking the corporate tax and cutting the consumption tax, given that most of Japan's GDP comes from consumer spending. Corporate greed is holding us back.

The next post here is Nissans profit doubled. Go figure 24 months or decline in salary. Explains the weakness of the yen and the over continued lack of “who cares attitude” of Japans neighbors.

@JeffLee

Companies don’t make laws in Japan, the politicians do.

If companies don’t pass on profits then make them under Japanese laws.

it’s not rocket science…

They don't set most of our wages, companies do, so why blame them?

The excessive inflation we are seeing is a direct result of the excessive spending by the Abe/Kishida administrations.

Would you disagree?

Really wondering how much longer Japanese people (and foreign residents) are expected to endure this...

Yen still sinking so expect no better before long

Clearly it's time for a certain someone to fly to Switzerland for a photo op.

It’s like a game of whack-a-mole.

Lets see where the BOJ jumps up to debase the yen for the 3rd time this month!

I am sure the company owners, Company boards and Politicians who awarded themselves massive pay rises are crying crocodile tears…

@kurisupisu

Companies don’t make laws in Japan, the politicians do.

So what? It's not illegal for employers to give their workers raises in line with their earnings growth. Which is what everyone wants them to do. But they refuse. So it's their fault. How obvious is that?

@Asiaman

The excessive inflation we are seeing is a direct result of the excessive spending by the Abe/Kishida administrations.

No it isn't. Japan's problem has been deflation - not inflation - until very recently while it spent way more than its counterparts and ran up much bigger deficits. Today's inflation comes from the twin global supply shocks of Covid and Ukraine, with the addition of the US Fed's series of jumbo interest hikes. It's got nothing to do with Japan's domestic fiscal situation.

Finance Ministry data shows only around 20 percent of small and medium-sized companies raised pay by more than 5 percent.

I'd imagine these small to medium companies are not exposed to global trade and therefore are reliant on domestic consumption to raise pay meaningfully.

on the other hand, large corporations' profit are largest ever.

wealth distribution in Japan is clearly failed.

The same thing is happening in other countries. In the US the working class is struggling. The corporations around the world charge what they want for items not as good in the past, for gasoline, food -- you name it. One thing that doesn't trickle down is money. Plenty of other things, but not money.

labor productivity has been flat for 20 years. it would be difficult and risky to pay workers much more.

Funny the downviting does not like hearing the truth. I was not judging anyone but stating the obvious.