Latest news with #realwagegrowth
Japan Times
27-05-2025
- Business
- Japan Times
Japan private sector backs 1% real wage growth per year over next five years
The private sector has joined the government in pushing for 1% real wage growth annually over the next five years, as wages in Japan continue to fall on an inflation-adjusted basis. First mentioned by the government's "new capitalism" panel earlier this month, the goal was brought up again on Monday in a proposal by the private sector members of the government's advisory Council on Economic and Fiscal Policy. They urged the government to ensure achieving the target becomes 'a norm across the Japanese economy' over the next five years. The council also deliberated on the framework for the annual basic economic and fiscal policy, which is set to be approved by the Cabinet in June. Real wages — nominal wages adjusted for inflation — declined for three consecutive fiscal years through the end of fiscal 2024. In March, real wages fell by 2.1%, marking the third straight month of negative growth. 'We will work to establish an annual real wage increase of around 1% across the Japanese economy under conditions of sustained and stable inflation,' Prime Minister Shigeru Ishiba said at the council meeting, held at his office on Monday. The proposal submitted by the four private-sector council members of the council — including Masakazu Tokura, chairman of Keidanren, and Keizai Doyukai President Takeshi Niinami — also asked the government to exert maximum effort to ensure the nation's average minimum wage reaches ¥1,500 ($10.5) an hour by the end of this decade — a goal that's been mooted by Ishiba since assuming office last year. The current average is ¥1,055 an hour. 'We will aim to achieve the ambitious goal of raising the national average minimum wage to ¥1,500 during the 2020s, and carry out concentrated public-private initiatives over the next five years to that end,' the prime minister said. In April, consumer prices excluding fresh foods were up by 3.5% year-on-year, higher than March's 3.2% and above expectations. The Bank of Japan forecasts consumer prices excluding fresh foods to rise 2.2% in the fiscal year ending in March 2026, assuming that progress is made in tariff negotiations between various countries and the United States, and that global supply chains function smoothly, according to an outlook presented to the council by Gov. Kazuo Ueda. Private-sector council members cited the effects of U.S. President Donald Trump's tariff measures as the largest economic risk factor, and called for structural reform in the nation's economy, such as expanded government investment in labor-saving technologies and more private capital investment. They were negative on tax cuts. 'Rather than pursuing tax cuts without secured fiscal backing, it is important to solidify the momentum for wage increases by expanding the overall economic pie, while also striving to enhance productivity and strengthen growth potential,' they said in the proposal.
News.com.au
14-05-2025
- Business
- News.com.au
Real wages grow to 3.4 per cent as household consumption softens
St George Bank Chief Economist Besa Deda says real wage growth will support consumer spending despite 'soft' household consumption. 'Real wages growing means that it will help support consumer spending growth and overall economic activity,' Ms Deda told Sky News host Ross Greenwood. 'We have seen over the last period that household consumption has been pretty soft due to the cost of living expenses. 'Although the recent rate cut in February has helped alleviate some of those cost-of-living expenses.'
