Japan’s nominal labor cash earnings rose by 1.8% yoy in February, aligning with market expectations and marking a 26-month streak of increases. Monthly wages saw 2.0% yoy increase, with regular pay rising by 2.2% yoy. However, over-time pay decreased of -1.0% yoy, and special payments fell significantly by -5.5% yoy.
Real wages fell by 1.3% yoy, marking the 23rd consecutive month of decline. This trend underscores the continuing issue of rising living costs eroding purchasing power of Japanese workers,
A Ministry of Health, Labor, and Welfare official noted, “We will monitor how growth in nominal pay will develop while price gains are weighing down real wages.”
