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Wages in Japan drop for 3rd straight year in 2024 as inflation bites

20 Comments

Japan's real wages fell 0.2 percent from a year earlier in 2024, marking the third consecutive year of decline, as pay hikes that grew at the fastest pace in 33 years failed to keep pace with rising prices, government data showed Wednesday.

Nominal wages, or the average total monthly earnings per worker including base and overtime pay, increased 2.9 percent to 348,182 yen last year, expanding for the fourth straight year, the Ministry of Health, Labor and Welfare said.

But consumer prices outpaced wage growth with a 3.2 percent rise in the reporting year, although the pace decelerated from a 3.8 percent increase in 2023.

By month, real wages at workplaces with five or more employees increased year-on-year only when bonuses were paid in June, July, November and December, despite the government's push to achieve wage growth exceeding inflation.

Excluding bonuses and nonscheduled payments, average wages climbed 2.1 percent and special cash earnings, largely reflecting bonuses, expanded 6.9 percent, the ministry said in a preliminary report.

Meanwhile, real wages at workplaces with 30 people or more inched up 0.1 percent in 2024, rising for the first time in two years, according to the ministry.

In December, real wages, a barometer of consumer purchasing power, climbed 0.6 percent from the year before.

Nominal wages increased 4.8 percent to 619,580 yen, up for the 36th straight month, with special cash earnings, including winter bonuses, expanding 6.8 percent from the previous year to 333,918 yen.

© KYODO

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20 Comments
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Tell us something that we don’t know.

-5 ( +16 / -21 )

Getting poorer every day...

-17 ( +26 / -43 )

Japan’s fast becoming the new Thailand. Dirt cheap for tourists but pays peanuts to people who live there.

-16 ( +23 / -39 )

But consumer prices outpaced wage growth with a 3.2 percent rise in the reporting year, although the pace decelerated from a 3.8 percent increase in 2023.

My situation: a 0% pay rise VS a 30% rise in the price of everyday goods, when including shrinkflation.

Somebody is telling porkies.

10 ( +22 / -12 )

Terrible situation tbh.

-3 ( +13 / -16 )

I'll word this carefully. Is the deterioration a result of static employment and salaries. or an imbalance or salaries tax v GST. Or does the Gov not have a financial mechanism to protect the yen? There is a big wide world out there. it does depend on your family situation. and Mr T tolerance currently. I stress not a lecture. None of us knows what the financials will do currently, I made choices 3-4 decades ago when my mortgage rate hit 15%. Eyes wide open time.

4 ( +6 / -2 )

Total opposite a few weeks ago when they reported increases. It’s all a scam.

7 ( +20 / -13 )

Since the number of short-time workers over age 60 is increasing, it is no wonder that real wages are decreasing. This will change if the annual income barrier (1.03 million yen) is raised.

6 ( +7 / -1 )

Reduce domestic taxes by 2% and increase tourist tax instead. Or implement some sort of currency exchange tax.

2 ( +8 / -6 )

But, but, but.... there was just a recent rosy article about how "wages" have been increasing here in Japan.

You mean it's not true?

-2 ( +17 / -19 )

Since the number of short-time workers over age 60 is increasing, it is no wonder that real wages are decreasing. This will change if the annual income barrier (1.03 million yen) is raised.

Yes, but they are probably not counted in this number. The story says "Nominal wages increased 4.8 percent to 619,580 yen, up for the 36th straight month" so it is only counting seishain.

This very second, NHK news is showing a non-seishain protest asking for a 10% rise. They've just put a graph up saying non seishain only get 2/3 for doing the same work.

6 ( +7 / -1 )

Been thinking about splurging on a five-star hotel weekend in Tokyo to celebrate our upcoming 25th wedding anniversary. The first hotel I looked at was 100-thousand yen for ONE night. I kid you not.

-4 ( +8 / -12 )

Will JT now stop banging on about record wage increases?

-3 ( +9 / -12 )

nothing new, the Japanese politicians like to give handouts and then take away more in other ways…. It’s a scam of finding new ways to screw over its own people and people who try and make an honest living in Japan. Chasing so called tourist dollars also exacerbate the situation unnecessarily.

1 ( +5 / -4 )

I understand 40% of J employees are on part time contracts.

The promises of "third arrow" reforms never materialised.

The J depopulation crisis is exasperated by the fact that most long term couples simply refuse to marry due to wage poverty.

6 ( +7 / -1 )

Cut taxes! Simple solution.

4 ( +5 / -1 )

My real wages back in the 90s were way higher than they are now. My taxes, pension and health insurance were much lower too which also cuts massively into my purchasing power.

This government is failing in increasing wealth with their push for inflation, which I believe is backfiring.

7 ( +7 / -0 )

Japanese government needs a DOGE

5 ( +6 / -1 )

You can feel it at the supermarket, especially if you are trying to stay healthy and buys fruits and veg. Prices have skyrocketed. The wifeys always going on about it. A global phenomenon though, nothing particularly special about Japan. Try living in Australia!

7 ( +7 / -0 )

Even this is a blatant lie.

First, contractors do not receive any yearly salary increase. Is up to them to negociate every year the salary, which the employees are giving it lower and lower.

Second, the permanent workers, except for a few select industries, are not receiving more than 1.2% to 1.4% increase, which compared to almost 20% yearly inflation, is peanuts money.

Third, the taxes and the living expenses exploded in the past 4,5 years, utilities prices too, food prices are getting higher and higher every 2 months now.

So if you draw a line, the real salaries are decreasing at a way much alarming rate then JT makes it look like.

Japan is slowly, but surely in yet another 3rd world Asian country that lives mostly out of tourism, while the middle class is getting extinct.

1 ( +1 / -0 )

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