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Japanese average real wages decline for four consecutive years
The preliminary statistical results released by Japan’s Ministry of Health, Labour and Welfare on the 9th show that due to persistent inflation, after excluding price increases, Japan’s per capita real wages in 2025 decreased by 1.3% compared to the previous year, marking the fourth consecutive year of decline.
The report indicates that in 2025, the average nominal cash wage for Japanese workers increased by 2.3% compared to the previous year. However, due to continuous price increases in recent years, with last year’s consumer price inflation reaching 3.7%, exceeding the growth rate of nominal wages, real wage income continues to decline.
Japanese media and experts believe that the expansionary fiscal policies advocated by Prime Minister Sanae Suga will further exacerbate inflation. With real wages continuously falling and prices rising, consumer stagnation may occur, putting pressure on Japan’s economic recovery.
(Source: Xinhua News Agency)