The world’s third largest economy reported its worst real-wage decline in more than eight years on Friday, a day after its leader asked businesses to hike workers’ pay at a level above inflation. Japan saw a 3.8% year-on-year fall in inflation-adjusted wages in November, data published by the Ministry of Health, Labor and Welfare showed. It’s the biggest fall since May 2014, when a consumption tax hike at the time caused a 4.1% decline, according to data published by the ministry.
“Consumption will grow, business investment will grow and further promote economic growth.” Raising wages by 3% or more a year is a core goal of Kishida’s administration. The prime minister, who took office in late 2021, noted that while corporate profits had ballooned in the past 30 years, salaries failed to keep pace with that growth.
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