Japan’s latest wage figures show that wage increases have lagged behind inflation every month for two years now, even as a measure of the deeper trend points to steady growth.
Real wages fell 2.5% from a year earlier in March, marking the deepest decline in four months and extending the streak of declines to exactly 24 months, the Labor Ministry said Thursday. The consensus estimate was a decline of 1.4%. Nominal employee income growth slowed to 0.6%, which also fell short of expectations.
The slowdown in nominal wages was exacerbated by a 9.4% decline in bonuses. Data for full-time workers who avoid sampling issues and exclude bonuses and overtime rose 2.3%. This index, which is closely watched by the Bank of Japan, remained at or above the 2% threshold for a seventh month, signaling steady underlying salary growth.
