Japan’s real wages rose by 0.4% yoy in July, down from June’s 1.1% yoy, but still marking the second consecutive month of growth after 27 months of decline.
Nominal wages increased by 3.6% yoy, surpassing expectations of 3.1%, but slowing from June’s 4.5% yoy. Regular pay, which rose 2.7% yoy, achieved its fastest growth in nearly 32 years. However, overtime pay, often seen as a gauge of corporate strength, dipped slightly by -0.1% yoy.
Special payments, such as bonuses, played a significant role in lifting wage growth during the summer, with a 6.2% yoy increase in July, following a 7.8% yoy rise in June.
A labor ministry official noted, “From August and thereafter, monthly wages will be a deciding factor” in sustaining real wage growth, as the contribution from special payments will diminish in the coming months.
