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Japan Real Wages Sink 2.8% in November as Bonus Payouts Slump

Bonus-driven wage weakness tests the Bank of Japan's tightening path.

Overview

  • Inflation-adjusted pay fell 2.8% year on year in November, the 11th straight decline and the sharpest drop since January.
  • Average total cash earnings rose 0.5% to ¥310,202, the slowest nominal increase since December 2021.
  • Special payments, largely one-off bonuses, plunged about 17% from a year earlier, heavily weighing on the monthly wage result.
  • A labor ministry official said preliminary figures likely understate winter bonuses because many firms have not yet reported.
  • Consumer prices rose 3.3% on the ministry’s gauge as the Bank of Japan holds its new 0.75% rate, with spring wage talks and Rengo’s 5% pay goal now pivotal.