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Reuters
6 days ago
- Business
- Reuters
Japan April real wages slump for fourth month as inflation bites
TOKYO, June 5 (Reuters) - Japanese real wages fell for a fourth consecutive month in April, eroded by stubborn inflation that has continued to outpace pay hikes delivered so far by companies, government data showed on Thursday. The wage data adds to concerns about Japan's growth outlook at a time U.S. President Donald Trump's sweeping tariffs stir uncertainty about the global economy. Japanese policymakers and analysts are concerned global trade tensions may offset the pay hike momentum and complicate the Bank of Japan's efforts to normalise monetary policy. Inflation-adjusted real wages, a key determinant of households' purchasing power, slumped 1.8% in April from a year earlier after a revised 1.8% drop in March and 1.5% fall in February, labour ministry data showed. The consumer inflation rate the ministry uses to calculate real wages, which includes fresh food prices but not rent costs, eased slightly to 4.1% year-on-year in April from 4.2% in March but stayed around 4% for five months in a row. "While wages are steadily rising, prices remain high," said a labour ministry official. Regular pay, or base salary, rose 2.2% in April, the fastest pace in four months. Overtime pay edged up 0.8%, reversing a decline in March, while special payments grew 4.1%. Total average cash earnings, or nominal pay, increased 2.3% to 302,453 yen ($2,098.04) in April, the same as a revised increase in March. Major Japanese firms on average agreed to more than 5% pay hikes during annual spring wage talks in March. While some of those were already implemented in April, the labour ministry official said the newly agreed pay hikes would be gradually reflected in future wage data. ($1 = 144.1600 yen)
CNA
6 days ago
- Business
- CNA
Japan April real wages slump for fourth month as inflation bites
TOKYO :Japanese real wages fell for a fourth consecutive month in April, eroded by stubborn inflation that has continued to outpace pay hikes delivered so far by companies, government data showed on Thursday. The wage data adds to concerns about Japan's growth outlook at a time U.S. President Donald Trump's sweeping tariffs stir uncertainty about the global economy. Japanese policymakers and analysts are concerned global trade tensions may offset the pay hike momentum and complicate the Bank of Japan's efforts to normalise monetary policy. Inflation-adjusted real wages, a key determinant of households' purchasing power, slumped 1.8 per cent in April from a year earlier after a revised 1.8 per cent drop in March and 1.5 per cent fall in February, labour ministry data showed. The consumer inflation rate the ministry uses to calculate real wages, which includes fresh food prices but not rent costs, eased slightly to 4.1 per cent year-on-year in April from 4.2 per cent in March but stayed around 4 per cent for five months in a row. "While wages are steadily rising, prices remain high," said a labour ministry official. Regular pay, or base salary, rose 2.2 per cent in April, the fastest pace in four months. Overtime pay edged up 0.8 per cent, reversing a decline in March, while special payments grew 4.1 per cent. Total average cash earnings, or nominal pay, increased 2.3 per cent to 302,453 yen ($2,098.04) in April, the same as a revised increase in March. Major Japanese firms on average agreed to more than 5 per cent pay hikes during annual spring wage talks in March. While some of those were already implemented in April, the labour ministry official said the newly agreed pay hikes would be gradually reflected in future wage data. ($1 = 144.1600 yen)
CNA
08-05-2025
- Business
- CNA
Japan March real wages down for third month, overtime pay falls
TOKYO :Japanese real wages decreased for a third consecutive month in March against the background of relentless inflation, while overtime salaries fell at the fastest pace in almost a year, government data showed on Friday. The pay data will add to worries over Japan's growth outlook, alongside tariff threats and uncertainty over monetary policy, ahead of a first-quarter gross domestic product announcement next week. Economists are expecting a contraction. Inflation-adjusted real wages, a key determinant of households' purchasing power, dropped 2.1 per cent in March from a year earlier following a revised 1.5 per cent fall in February and a 2.8 per cent decline in January, labour ministry data showed. The consumer inflation rate the ministry uses to calculate real wages, which includes fresh food prices but not rent costs, rose 4.2 per cent year-on-year in March, slightly easing from February's 4.3 per cent gain but still at elevated levels due to rising food costs. Regular pay, or base salary, grew 1.3 per cent in March, the same pace as in February after a downward revision. But overtime pay fell 1.1 per cent, following February's revised 2.4 per cent growth, indicating a potential softening in business activity. It marked the first dip in overtime pay since September, and the decrease was the sharpest since April last year. Total average cash earnings, or nominal pay, increased 2.1 per cent to 308,572 yen ($2,132) in March, which was slower than a revised 2.7 per cent rise in the previous month. In March, major Japanese firms on average agreed to more than 5 per cent pay hikes during annual spring wage talks, but the effect of such raises typically begins to show up in the government's wage data for April or later. ($1 = 144.7500 yen)
Reuters
08-05-2025
- Business
- Reuters
Japan March real wages down for third month, overtime pay falls
TOKYO, May 9 (Reuters) - Japanese real wages decreased for a third consecutive month in March against the background of relentless inflation, while overtime salaries fell at the fastest pace in almost a year, government data showed on Friday. The pay data will add to worries over Japan's growth outlook, alongside tariff threats and uncertainty over monetary policy, ahead of a first-quarter gross domestic product announcement next week. Economists are expecting a contraction. Inflation-adjusted real wages, a key determinant of households' purchasing power, dropped 2.1% in March from a year earlier following a revised 1.5% fall in February and a 2.8% decline in January, labour ministry data showed. The consumer inflation rate the ministry uses to calculate real wages, which includes fresh food prices but not rent costs, rose 4.2% year-on-year in March, slightly easing from February's 4.3% gain but still at elevated levels due to rising food costs. Regular pay, or base salary, grew 1.3% in March, the same pace as in February after a downward revision. But overtime pay fell 1.1%, following February's revised 2.4% growth, indicating a potential softening in business activity. It marked the first dip in overtime pay since September, and the decrease was the sharpest since April last year. Total average cash earnings, or nominal pay, increased 2.1% to 308,572 yen ($2,132) in March, which was slower than a revised 2.7% rise in the previous month. In March, major Japanese firms on average agreed to more than 5% pay hikes during annual spring wage talks, but the effect of such raises typically begins to show up in the government's wage data for April or later. ($1 = 144.7500 yen)
Yahoo
08-05-2025
- Business
- Yahoo
Japan March real wages down for third month, overtime pay falls
TOKYO (Reuters) -Japanese real wages decreased for a third consecutive month in March against the background of relentless inflation, while overtime salaries fell at the fastest pace in almost a year, government data showed on Friday. The pay data will add to worries over Japan's growth outlook, alongside tariff threats and uncertainty over monetary policy, ahead of a first-quarter gross domestic product announcement next week. Economists are expecting a contraction. Inflation-adjusted real wages, a key determinant of households' purchasing power, dropped 2.1% in March from a year earlier following a revised 1.5% fall in February and a 2.8% decline in January, labour ministry data showed. The consumer inflation rate the ministry uses to calculate real wages, which includes fresh food prices but not rent costs, rose 4.2% year-on-year in March, slightly easing from February's 4.3% gain but still at elevated levels due to rising food costs. Regular pay, or base salary, grew 1.3% in March, the same pace as in February after a downward revision. But overtime pay fell 1.1%, following February's revised 2.4% growth, indicating a potential softening in business activity. It marked the first dip in overtime pay since September, and the decrease was the sharpest since April last year. Total average cash earnings, or nominal pay, increased 2.1% to 308,572 yen ($2,132) in March, which was slower than a revised 2.7% rise in the previous month. In March, major Japanese firms on average agreed to more than 5% pay hikes during annual spring wage talks, but the effect of such raises typically begins to show up in the government's wage data for April or later. ($1 = 144.7500 yen)
