In May, Japan’s nominal labor cash earnings showed a year-on-year increase of 1.9%, surpassing April’s growth of 1.6%. This marks the 29th consecutive month of growth and the most significant rise in 11 months, albeit below the anticipated 2.1% year-on-year increase.
Regular pay experienced a notable uptick of 2.5% year-on-year, the strongest pace observed since January 1993. Additionally, overtime pay rebounded by 2.3% year-on-year, marking its first increase in six months.
Despite these gains in nominal wages, the overall picture for real wages remains concerning, with a year-on-year decline of -1.4%. This marks the 26th consecutive month of real wage reduction, worsening from the -1.2% year-on-year decrease recorded in April.
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