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Analysis

Japan’s September wages outpace inflation

Japanese workers’ average cash earnings rose faster than consumer prices in September, according to preliminary labour ministry figures. Real pay increased as both regular and special payments grew. The survey also recorded higher hourly scheduled pay for part-time workers. Its results cover establishments with at least five employees and can change when final estimates are released.

Economics & Markets··Midday
Side view of a supermarket worker in Japan moving vegetables from a shopping basket at a checkout, illustrating wages and everyday purchasing power.

Cash earnings rise faster than living costs

Japan’s September average cash earnings increased faster than prices, lifting workers’ purchasing power in preliminary labour ministry figures released on November 6. Average total cash earnings reached 311,409 yen, up 4.6 per cent from a year earlier. After price adjustment, earnings rose 2.2 per cent.[1], [2]

Regular and special payments both increase

The survey covers establishments with at least five employees. Regular payments rose 3.6 per cent to 299,151 yen, while special payments increased 32.6 per cent to 12,258 yen. Part-time workers’ total cash earnings grew 4.2 per cent to 114,412 yen. Their scheduled hourly pay reached 1,463 yen, an increase of 5.4 per cent.[1]

The inflation measure changes the real-pay calculation

The headline real-pay calculation uses consumer prices excluding imputed rent for owner-occupied housing; inflation on that basis was 2.4 per cent. Using the all-items price index instead gives real earnings growth of 2.3 per cent. The ministry received responses from 22,433 of 33,034 targeted establishments. Final figures can revise these provisional results.[1]

References

  1. News sourceMHLWJapanese real wages rise 2.2 per cent in September↩1↩2↩3
  2. News sourceFNNJapan’s real wages rise for a ninth consecutive month↩