Japan Real Wages In August: Updated Oct. 7, 2026.

Japan's real wages in August rise 1.5% on year, up for 8th straight month

Ideas

Real wages are an important metric as they help determine the possibility of how much disposable income consumers in Japan have, but at the time inflation has a say into how consumers want to spend in the economy.

Yes, prices might be slowing some, but for the average Japanese family they might still be too high and again it might reduce their disposable income and their ability to spend in the economy.

Nominal wages are just what they are and while they look good there is the idea related to the purchasing power of consumers and that too is important as nominal wages also include how much inflation as increased which can affect a consumer's purchasing power.

All in all, Japan just might be coming out of its dark days of deflation and stagflation and actually beginning to show some real growth but at the same time it must be remembered that Japan is still and advanced economy and advanced economies never really grow that much.

 This is a positive sign that Japan just might be seeing some positive signs for its economy and just might be finally shaking off the pandemic rust and stagnating that has constrained the economy the last five or six years.

But not to put a damper of the situation, its a little too early to celebrate just yet, as there needs to be more done as wages need to continue increase and inflation needs to be contained little more and the weak Japanese yen needs to be strengthened some too.

Yes, of course there are still major challenges that need to be looked as prices continue to increase and haven't seemed to level off just yet as consumers in Japan are still stressed out by the continuous increase food prices along energy prices affecting most Japanese households.

While energy subsidies are good and needed sometimes relying on them too much can  be a major constraint on an economy as it increases the government debt as someone has to pay for the subsidies and it allowed to run too long can become a major challenge for an government, but again they are still needed from time to time to help households.

The Japanese govt. for a long time has been encouraging companies to increase wages for the good of society and the good of the economy and only the past two years or so have companies finally begun to increase wages.

For too long it has been suggested, that Japanese companies were, at least the large name-brand companies were sitting on huge sums of cash as they were somewhat risk adverse and it all started around the 2008 financial crisis and ever since them they have been reluctant to use the extra cash reserves in giving wage increases to their employees.

And at the same time many of the these large companies have become too conservative due to the fact that that they have to look after their shareholders which expect positive quarterly reports and they can't go spending their money on increasing wages when their shareholder might not like it.

Have a nice day!

Article source:    https://mainichi.jp/english/articles/20261007/p2g/00m/0na/013000c

Japan Real Wages: Updated Aug. 23, 2026.

Japan real wages in June rise for 6th straight month on summer bonuses

Ideas

Its good Japanese households are finally seeing the real benefits of their wage increase and or bonuses and maybe companies, for once, are beginning to help their workers when for a long time companies held onto their cash and didn't use if the good of their workers.

Nominal wages are nothing to be excited about as they include inflation in the economy and are not real or real wages that matter to Japanese households overall.

Wage growth in Japan is very much needed as Japanese consumers have not much in wage growth for many years despite the continued increase in inflation in Japan.

Ever since the 2008 Global Financial Crisis, many Japanese companies horded their cash reserves and didn't increase wages much at all until maybe two years ago.

The Japanese government and the Bank of Japan tried to institute a policy or strategy to get companies to use their money in the economy with a "use it or lose it" strategy and for a very long time many companies were again very reluctant to dip into their huge cash reserves.

A 5.37 percent wage increase is very good for the large name-brand companies but its possible many of the small and mid-size companies were, unable due to less resources, to give the same wage increases.

It is estimated that up to 70 percent of the Japanese work-force works for small and mid-size companies and didn't get anything like to a 5.37 percent increase in wage hikes this year.

Hopefully, but probably not, Japanese companies, specifically publicly traded companies are are more humane than some or many US companies and actually care as much about their employees as they do about their shareholders.

The increase in summer bonuses again is very much needed as inflation in Japan, and the overall cost of living continues to increase ever since the pandemic ended.

Its good that the Japanese government is trying to keep some prices down such as giving a subsidy for gas and energy as every little bit helps consumers and Japanese households.

And its even better that the BOJ and government are trying to keep consumer prices below the 2 percent level even though some have suggested prices sometimes can increase up to 3 percent each month.

In years past, many Japanese companies were very reluctant to pass-on their costs to the next in the supply chain including the final retail customer whom they considered as stakeholders in society and the economy.

But those days seem long ago as profit margins continue to erode now, and unfortunately companies instead of absorbing their increased costs are quick now to pass-on their costs.

Yes, solid and continued wage growth are very important for the Japanese economy and just as important is stable price increases which are important and needed for companies to plan ahead as they need to know what is going to happens in the future as much as possible.

What companies don't like are fluctuations in prices or even fluctuations related to their overall costs as they need stability and need to know what is going to happen, again, so they can plan for the future.

Have a nice day!

Article source:  https://mainichi.jp/english/articles/20260805/p2g/00m/0bu/017000c

Japan Real Wages Increase: Updated May 11, 2026.

Japan real wages rise 1.0%, up for 3rd straight month on corporate efforts

Ideas

Its has been suggested, in other articles, that Japanese companies were making near record profits for many years but not sharing them with their employees, as again, it was suggested that, due to the 2008 financial crisis, companies were hording their cash and using to increase wages.

But now, as the Japanese government has been urging companies to increase wages many companies have complied and or offering wages to their employees. As there now is a supposed labor shortage many companies are increasing wages to make sure they can keep their current employees and or entice other employees to join their company.

Nominal wages, which look good, are not the real metric that should be considered as real wages are what is needed to measure consumer purchasing power and also disposable income which is what Japanese families are looking to see due the continued inflation situation in Japan.

That challenge will be, as always, are small and mid-size companies able to match what the large name-brand companies can give for wage increases this year. In years past or the last two years, small and mid-size companies, due to their limited profit margins, were unable to give out the same wage increases as the larger companies in Japan.

The Japanese government from time to time does use subsidies to help lessen the inflation burden on consumers, but at the same time, someone has to pay for those subsidies and it might mean the government is paying for the subsidies which means the government could be increasing even more.

And yes, consumer prices continue to increase but it seems at much slower rate, so maybe, just maybe Japan's continued inflation situations is beginning to see some light at the end of very long tunnel, but lets not get too positive about this just yet.

The Japanese yen, is both positive and a negative for the Japanese economy. For exporters its a positive, for the most part, as it allows Japanese companies to get more yen, money, for their products overseas, and the good part it they don't need to increase prices as the weak yen does that for themselves.

For the Japanese domestic economy, and importer, the weak Japanese yen is a negative it increases the price of import prices and as usual, importers and wholesalers will pass-on the increased price due to the weak yen to the next in the supply which can be final customer many times.

There might not be a significant impact at this time, and or its possible, the powers to be, don't want to cause alarm or cause too much uncertainty in the financial markets in Japan and globally.

Yes, the prolonged Middle East situation could have an affect on Japanese companies, as the world is very interconnected and what happens anywhere in the world today can easily affect companies and consumers everywhere.

And for example, even the wage increases going on now or just by the end of March, could be stalled, delayed, or scaled back as company estimates related to profit and sales could be significantly affected due to the Middle East situation.

Prices increased can happen two different ways. For example, as what has happened recently in Japan, prices increase have risen due to the increase in company raw material costs, energy costs and even labor costs due to the supposed labor shortage, and companies increasing wages to keep their employees from moving to another company, as companies will pass-on their costs to customers to keep their profit margins stable.

The other way prices increase of course is supply and demand, and supply was the preceding paragraph but prices increase too when customer demand increase significantly and companies will increase prices naturally as they see more customers like their products. 

The Bank of Japan is watching very carefully what is going on in the Middle East and if the situation changes or doesn't change and the global economy continues to be disrupted the BOJ most likely will just take a continued wait and see action. 

Of course inflation in Japan is always on the minds of the BOJ, as the BOJ board of governors seems to be split on what to do from time to time, as some are very hawkish and want to see an interest rate increase while some are very cautious or dove like and don't want to see a key rate increase at this time. So far the dove like members have been in control but can easily change over time. 

Have a nice day!

Article source:   https://mainichi.jp/english/articles/20260508/p2g/00m/0bu/020000c

Japan Real Wages in Feb. Updated April 9, 2026.

Japan's real wages rise for 2nd straight month in February with 1.9% growth

Ideas

Real wages in Japan seem to finally see some daylight after months or years being less that inflation and an increase of 1.9 percent, while not much, is a welcome increase for many Japanese households.

Japan has been hit by constant price increases as Japan is a resource-poor country and needs to import much of what it needs and is subject to the whims of global price increases. 

Wage increases, while good but not great, have also helped but companies need to do more its been suggested that many of the name-brand companies are sitting piles of cash which could be used to help with the daily lives of their employees in Japan.

Nominal wages really don't mean much as they give a false sense of an increase but in reality real wages, disposable income, and the purchasing power of Japanese consumers is what really matters in the economy and the daily lives of ordinary Japanese citizens.

If you ask the average Japanese consumer what are nominal wages and of course they probably won't know or even care as global consumers would probably say the same thing, as what really matters is the amount of disposable income they have and the purchasing they have each week and each month.

Yes, despite all of the news about nominal wages, real wages, inflation increases or decreases is good and needed by some in business and government but most consumers could care less about all the stats thrown around in the media, as what they care about is their purchasing power and again how much disposable income they have left on Friday or Saturday or at the end of the month.

While a 1.4 percent increase in consumers prices is maybe beginning to show a decreasing trend, it might still be too high for the most vulnerable in Japanese society as maybe it is still affecting the lower-income groups, the fixed income groups, and of course the single mother who has to take care of her two children and only a contract salary or wage with no real benefits.

Japan is not an isolated island country or economy as, like all countries these days, it is highly interconnected to the rest of the world and what happens in the Middle East easily affects Japan just like the situation in the Ukraine has significantly affected raw material supplies and prices from that region.

Yes, private consumption or consumer spending is estimated to be about half of Japan's gross domestic product, but in reality it might be a little less in actual spending as in recent years consumer spending in Japan just hasn't been enough to significantly help the Japanese economy grow that much as maybe it should be around 55 or even 60 percent of GDP to see any sustainable real growth each year.

The Bank of Japan or BOJ is watching very carefully what is happening in Japan and the Middle East with of course energy and oil prices as Japan has to import much if not all of its energy needs which could be factor in the BOJ's decision to increase rates or keep them where they are now.

And yes, again, the BOJ is watching the wage talk increases as it appears some or many companies have actually met the demand of their labor unions, but as usual, while the large-name brand companies are doing their part, it remains to be seen just what the small and mid-size companies are doing or what can they really do.

It is estimated that up to 70 percent of the Japanese work-force works for small and mid-size companies and not the large name-brand companies that get all the news.

Most if not all small and mid-size companies just don't have the needed resources to match what the large companies can do and such the wage increases by the smaller companies are never going to be as much as a large company wage increases.

While any wage increase is good and needed, what is really important is what does the average Japanese worker feel about their wage increase? Japanese households, Japanese consumers have to got feel good about the wage increases and they have to be able to see it in their disposable income and their purchasing power at the end of the month, and if they don't see it or feel it they are not going to spend enough to increase or help economic growth in the economy.

And of course again, using the phrase the "the least among us" what does it do for the dis-advantaged in Japanese society? Do the wage increases reach the lower-income groups, the fixed income groups, and again do the wage increases help the single mother on a limited contract able to take care of her two children with no real health or medical benefits.

Have a nice day!

© 2026 Tom Metts,  all rights reserved

Article source:  https://mainichi.jp/english/articles/20260408/p2g/00m/0bu/022000c

Japan Economy Growth: Updated April 25, 2026.

Japan economy grows 1.3% in Oct.-Dec., revised up, on stronger investment

Article source: https://mainichi.jp/english/articles/20260310/p2g/00m/0bu/012000c

Ideas

Japan is a very mature economy which means it doesn't grow that fast or that much and  annualized growth of 1.3 percent might be a positive for Japan as that is all that Japan can really expect in economic growth these days.

Business spending, despite the urging of the Prime Minister, just like consumer spending, depends on who businesses feel about the future and if they don't anything positive in the future they are not going to spend.

And yes, even consumer spending or private consumption, consumers have to feel good about the future and feel good about their disposable income and purchasing power to spend in the economy.

And real GDP adjusted for inflation grew about what was expected as again, Japan being  very mature economy really can't expect that much more growth unfortunately.

Capital spending, again, is always based on what businesses feel the future is going be like despite what the Prime Minister wants for the economy, as Japan is still a democracy and is not controlled by the government.

Globally, most advanced countries, if not all, are building data centers and Japan in recent years has kind of re-entered the semiconductor making device market and for many years was not so active in the production of semiconductor devices.

And of course the spread of article intelligence has opened a race to see who can produce the most in the near future too.

labor costs keep increasing due to the fact that there is a labor shortage and the Japanese government is urging companies to increase wages as Japanese wages are significantly below most OECD economies.

Due to the so-called labor shortage companies need to increase wages to keep existing workers and try to entice other workers to join their company. 

And then add in the fact, while a democracy, the Japanese government has some sway in urging companies to increase wages to get consumers to start spending in the economy again.

Private consumer or consumer spending is always the weak link in the GDP formula as while consumer spending is suggested to be 50 percent of Japan's GDP, consumer spending always seems to be much less in recent years. 

Smartphones and car purchases are both durable good purchases and have never been a daily, weekly, or even month purchase maybe a smartphone purchase is every few years and a car purchase or even car lease might be 5 years or more.

And yes, food prices continue to increase in Japan and or remain significantly high which means Japanese consumers are being very selective on what's they buy and even might be cutting back and only buying the needed essentials these days.

Housing investments, for the most part, are always a safe place to invest even in Japan, as the stock market sometimes is very volatile and or not really safe for the average Japanese household.

A decrease of 0.3 percent is really not much to be concerned about as the margin of error in stats can easily cover that much in both increases and decreases, and overall it's not that much either way and will not be seen as a major problem.

Unfortunately, however, the US tariff situation is still in effect even though the US supreme court ruled its illegal but as usual the powers to be in the US found a way around it which of course means US consumers are still paying for the tariffs and or Japanese car companies are still absorbing the tariff fees. 

Spending by foreign tourists might have decreased due to the fact that many or most Chinese tourists are not going to Japan due to the Chinese government urging them not to go, which in effect tells them not to go to Japan.

Chinese tourists, being very close to Japan geographically, means or used to mean Japan always got a significant number of tourists from China each month and each year, before the latest setback in relations between the Japan and Chinese governments took a turn for the worse.

Yes, Japan might see some economic growth in the Jan.- March quarter but don't expect too much as Japan is a mature economy and mature economies just don't grow that much.

Real wages might help but it should be remembered that up to 70 percent of Japanese workers don't work for the large name-brand companies that pay the highest in wage increases which means most workers might not get much of a wage increase and or inflation will still be more than the wage increases over time.

And yes, the Mideast situation is going to continue to affect Japan as Asia and Japan are the most affected related to the shipments of oil out of that area.

And of course, unfortunately, the Japanese economy is going to be hit with continued high energy prices and and yes, as usual, companies are very quick these days to pass-on their increased costs to the next in the supply chain including the final retail customer.

Nominal GDP is really not the most important metric as Real GDP is the best indicator for an economy as it takes out inflation to see what really happened in an economy for a quarter or for a year.

Have a nice day!

Japan Real Wages in Jan. Updated March 16, 2026.

Japan real wages up 1.4% in Jan., 1st rise in 13 months, as inflation slows

Article source: https://mainichi.jp/english/articles/20260309/p2g/00m/0bu/018000c

Ideas

While real wages in Japan might have increased 1.4 percent its going take wages to increase more and for Japanese consumer to think, see, and feel that their purchasing power has increased enough to start spending in the economy again or enough to see any economic growth.

Prices, for the most part, have been increasing steadily ever since the pandemic or about that time, and Japanese consumers have not been able to feel good about their overall purchasing power and as such have not spent as needed in the economy to really see any economic growth, as suggested, consumer spending makes up about half of Japan's GDP.

Nominal wages are nothing more than inflation tacked on to wages to make it look like Japanese households have seen an increase while in reality they have seen a decrease in their purchasing power or in the amount of yen, money, as it has has less value in the economy.

Some might think, as its a common idea, that nominal wages are good and taken without inflation might actually be more than what is called real wages which take into account the subtraction of inflation and the real amount that consumers take home.

Unfortunately, global companies and especially global energy companies, will use any reason to increase the price and they won't wait to see what is going to happen as they want and need to protect their profit margins from any increase in costs.

It has been suggested that Japan and South Korea are two of the most vulnerable economies that are going to be affected by the Middle East conflict as they are energy-dependent countries and need to import much if not all energy commodities for their respective countries.

An increase of only 1.7 percent could be seen as being light at the end of the tunnel as maybe just maybe consumers prices are either decreasing and or beginning to stabilize and consumers could begin to see their purchasing power begin to get back to some kind of new normalcy again.

But its going to take more than one month of decreased consumer prices for consumers to see, feel, and think that things are getting back to some kind of normalcy as some might think its been this way ever since the pandemic.

Again, its going to take many more months of prices increase to be lower than the 2 percent inflation target at the BOJ has suggested as a target goal before it really does anything more significant with rate increases or even decreases.

But the key, as always is going to be labor-management wages negotiations as the BOJ is looking for companies to increase wages to the point that they think it might help Japanese households begin to feel good about their wages and begin to spend in the economy again.

But the problem is, as suggested, up to 70 percent of Japanese workers don't work for the large name-brand companies but small and mid-size companies that might not have the resources and or the profits margins to increase wages enough to keep their workers happy. The workers of course might not quit but again might not feel good about their overall purchasing due to less than expected wage increases in April 2026.

While a wage increase of 5.39 percent might be good, at least for the large companies, will the small and mid-size companies do the same or will they have to give wage increases a little less because of their profit margins can't handle the 5.39 percent increase.

The Japanese economy, society, is not just the major name-brand companies that always make the news as its been suggested that small and mid-size companies actually make up 99 percent of all companies in Japan, but as with any other economy the large companies make up most of the noise and or take most of the attention.

As usual or as normal, negotiations always start at a point where both sides agree or agree to disagree and then they work from there. Its less than a month now before the actual rate increase will be announced as again no one knows for sure just what the real percent is going to be and the real story is what are the small and mid-size companies going to do or what can they do even though might want to increase wage more but just can't do it.

labor always asks for a larger wage increase knowing full well that they might not get it but its a starting point that they hope they can get close to if not the exact amount.

Yes, real wages are the key and not nominal wage as real wages affect private consumption or consumer spending and if Japanese households, again, don't see, feel, or think their wages are enough they are not going to increase their spending in the Japanese economy and the economy is not going to grow to it full potential.

The Bank of Japan of course hopes the wage increases will be enough to put a dent in the inflation situation in Japan and hopes wage increases will be enough that Japanese households, again, begin to feel, see, and think their purchasing power has increased enough to begin to spend again in the economy.

And if that happens the BOJ might not increase the rate that much but just enough to give it some room in case it does have to decrease the rate again someday.

But the Bank of Japan is a very conservative agency and is not going to do anything if they feel the inflation target is not within reach and or if the wage increases are not enough for them to do anything that will make a significant contribution to the economy.

Have a nice day!

Japan Real Wages: Updated Feb. 13, 2025.

Japan's real wages fall 1.3% in 2025, down for 4th straight year

Article source: https://mainichi.jp/english/articles/20260209/p2g/00m/0bu/019000c

Ideas

The disposable income of Japanese households continues to go down as wage increases can't seem to keep up with inflation along with the increase in price increases in Japan.

It must be remembered or considered, that up to 70 percent of Japanese workers don't work for the large name-brand companies in Japan but work for the small and mid-size companies which usually don't pay the same wage increases as the large companies as their profits margins are just too thin to try and match the large company wage increases.

And as the disposable incomes keep decreasing for Japanese households that means, after bills are paid, they have less and less money to spend in the economy, which means the economy is not going to grow as most consumers just don't have the needed extra money to spend on things in the economy.

Nominal wages are wages which includes the increase in inflation added on but is deceiving, as it looks good and looks like a consumer has more income but in reality real income is what matters for consumers and households everywhere.

Again, nominal wage increases just show how much inflation as increased as wage earners can see it in their paychecks but it really doesn't do anything for the disposable incomes of consumers as in the end, due to inflation, they actually have less to spend.

Consumer price increases of 3.7 percent might be even noticeable for most consumers who usually are just too busy to notice small increases in prices and if buying at a supermarket after a busy work day or a mother with two children just trying to get in and out of the supermarket, again they might not even notice the price increases.

But ask the low-income groups or the fixed income groups if they notice a 3.7 percent or even a 3.2 percent increase in consumer prices and most likely they can see and feel the increase in prices as they have a much limited disposable income to use in the supermarkets and in the economy, if any at all.

Yes, many Japanese companies at the shunto labor-management negotiations have agreed to increase the wages of their workers, which is of course very good and very needed, but the problem again, the small and mid-size Japanese companies, which might want to do the same thing, just can't do it at the same level, due their thinner profits margins, which means again up to 70 percent of the Japanese work force is still going to effected significantly by the inflation situation in Japan.

To be fair and positive, a 5.39 percent increase in wages is just an average and there might be some that will increase wages even more than that but not to dampen the mood there are going to be some or many that just can't match 5.39 percent as they might want to do and know they need to do it but their profits margins just can't handle a 5.39 percent increase in wage costs.

It has been suggested, in past articles, that many of the large Japanese companies, after the 2008 financial crisis began to sit on large cash reserves due to the possible uncertainty of the global economy at the time, but even today, its is suggested they are still sitting on huge reserves of cash and a increase of 5.39 percent in wages really doesn't seem like that much as they are still being very conservative with their funds.

Part of the problem or challenge is many of the large Japanese companies today are publicly owned which means they are accountable to shareholders who demand and expect a certain level of profit or return in their stock investments and increasing wages beyond 5 or even 6 percent level might be too much for even the large companies if they can't meet the profit projections as that their shareholders expect from quarter or quarter or even year to year.

Yes, private consumption or consume spending might make up to 50 percent of Japan's GDP or domestic product, but if consumers in Japan have decreased disposable incomes due to the continued increase in inflation there no way way consumer spending is going to be close to the 50 percent of GPD as consumer spending might make 45 or 48 or even 49 percent at the very most, and that amount is just not going to increase the growth of the economy in Japan.

It seems, and to be fair, the BOJ is relying heavily on wage increases to help improve economic growth in Japan. And its probably a good idea but again, large companies in Japan are going to do their part but the question mark, as always, is what are the small and mid-size companies going to do or what can they really do if anything to help boost the economy or increase wages enough to boost the economy.

Prices continue to remain high in Japan for several reasons, such as Japan is a resource-poor country which means it has to import much or what is needs as as global prices, due to many factors continue to increase, Japan importers and wholesalers continue to either absorb the price increases and or pass-on the price increases to the next in the supply chain which makes ultimately the final retail customer in Japan.

The other main reason is the variance between the US key rate and the Japan key rate due to the fact that for a period after the pandemic the US central bank kept increasing its key rate to try and decrease inflation while the BOJ kept its key rate almost at zero, suggesting the Japanese economy was just too weak for a rate increase and as a result the large variance between the US rate and the Japan rate as been a significant factor in the Japanese yen being very weak, which increases import prices in Japan.

As noted real wages decreased by 0.1 percent while nominal wages increased by 2.4 percent which means inflation might have increased by 2.5 percent or more from the previous year. 

At the same time, again, it means Japanese household's disposable income or even purchasing power of consumers in Japan continues to decrease which means there is/was less spending in the Japanese economy which again means less or no economic growth for the economy.

Nominal wages might look good or feel good in the short-term but in reality real wages is what matter as it determines purchasing power and the amount of disposable income consumer or households really have too spend in the the Japanese economy.

Have a nice day!

Japan Real Wages in Nov. Updated Jan. 9, 2026.

Japan's real wages in November fall 2.8% on year, down for 11th month

Article source:  https://mainichi.jp/english/articles/20260108/p2g/00m/0bu/018000c

Ideas

Its hard to determine exactly how much the real wage decreases have affected normal Japanese households and there are various levels of income households like in any countries.

Some households might not have seen any real affects at all but some at the lower income levels might be seeing significant affects to do increased prices or low wages if they work for small or mid-size company in Japan.

And then there is are the fixed income groups who are affected the most as they only have a limited amount of income and any increase in prices affects them the most.

Nominal wages might be an interesting metric but the real metric is real wages and the real purchasing power of Japanese households or Japanese consumers as it determines just how much disposable income they have to spend in the economy.

It is estimated that 70 percent of Japanese workers don't work for the large name-brand Japanese companies but work for small and mid-size companies, which traditionally don't have the same resources or the same profits margins and can't give the same wage increases as the large companies give, which means most might not have even seen even close to what wage earners got at the large Japanese companies.

As this is the winter season, and energy prices continue to remain high most likely many Japanese households might be trying to ration their heat or every use in their homes due the high energy prices which of course include heat needed for homes and families.

And then for example, a sad case of a small church in Yokohama which can't afford to heat its place due to a lack of funds and or lack of church members not giving as needed, as Japanese churches traditionally don't have large groups of members to keep the place warm.

The BOJ might be watching carefully what is happening but that doesn't mean they are going to increase the rate as lot can happen by the spring as wage increases, yes needed, and very important, but they alone might not cause the BOJ to increase the rate.

There is still the US tariff situation that might or might not really affect Japanese companies and a lot depends on how much of the tariffs they absorb and how much they pass-on to the next in the supply chain and ultimately the companies and customers in the US, which might affect demand in the US eventually.

Summer and winter bonuses, while very important, seem to mask any real increase in wages and they don't have really show what is happening with companies and wage increases as bonuses are a normal part of what happens in Japan and might not really have much do to with wage increases.

With that said, bonuses can make up for any shortcomings in wage increases as maybe companies use bonuses to offset the less than needed wage increases as Japanese workers depend on normal wages 12 months a year but only see bonuses twice a year in Japan.

While again, bonuses are good and needed, they come during the time of year when Japanese families or workers might travel, such as in May during the beginning of Golden Week and again in December during the traditional year end holiday period and again might use the bonus to travel which means they might have only have their normal wages to depend on the rest of the year.

Have a nice day!

Japan Real Wages Decrease: Updated Dec. 9, 2025.

Japan's real wages fall 0.7% in October, down for 10th straight month

Article source: https://mainichi.jp/english/articles/20251208/p2g/00m/0bu/003000c

Ideas:

 Real wages are very important for households and consumers as they are a key indicator of purchasing power and how much consumers really have to spend.

For Japanese households real wages have been steadily decreasing which means their disposable income was/is getting less each month.

Most likely, as Japan is facing a critical labor shortage less part-time workers are being hired in favor of more full-time workers in Japan.

Nominal wages are not whats important for consumers as nominal wages just show how much inflation has increased or decreased relative to wages.

Again, real wages are the most important indicator as it shows how much real purchasing power consumers have in an economy.

As the article suggests nominal wages have increased for 46 straight months which means inflation has steadily increased in Japan since the pandemic.

A 3.4 percent increase in food costs is not good for most Japanese households and its especially not good for the low-income and fixed income groups in Japan.

It means these groups might have to look for food substitutes that might not be as good or healthy as their normal food choices.

The 3.4 percent might also mean there is going to be less spending in the Japanese economy as Japanese households, consumers cut-back on their normal shopping patterns.

Bonuses in Japan are usually paid at the end of the normal year, in Nov. or Dec. and again in around May or June.

Wages in Japan are usually much lower than wages in the US so companies make up the difference, somewhat, with bonuses twice a year.

As inflation has been a constant in Japan almost since the pandemic it doesn't look like it's suddenly going to just stop and everything will be good for Japanese households.

The Bank of Japan is going to watch what is going to happen with the Japanese economy related to inflation, price increases related to food, energy cost increases, wage talks and companies, and of course the US tariff situation and how its affecting the Japanese economy.

Most likely, but just a guess, based on the past history of the BOJ, they are not going to make a decision that will cause harm to the economy and they will most likely take another wait and see approach.

If they do make a move it will just be a very minimal incremental rate increase which they think is not going cause much harm to the Japanese economy.

Have a nice day!

Japan Real Wages Decrease in Sept. Updated Nov. 7, 2025.

Japan's real wages fall 1.4% in September, down for 9th straight month

Article source: https://mainichi.jp/english/articles/20251106/p2g/00m/0bu/022000c

Ideas

Company pay hikes, while good, are only good if they get ahead of the persistent inflation that has continued in Japan since the pandemic.

The challenge and problem is only about 30 percent of workers in Japan work for the large name-brand companies and the other 70 percent work for small and mid-size companies that usually pay less in wage increases than the large companies, which means up to 70 percent of the Japanese workforce has less disposable income to use in the economy,

Nominal wages also includes inflation which is not a good measure and real income should be the true income measure of an economy. Real income shows the purchasing power of a consumer and how much their money they can use in an economy.

Of course nominal wages increased for the 45th consecutive month as inflation has continued to remain high for a very long time.

Yes, consumer prices were up 3.4 percent in September. That might not seem like much for some upper middle-income families, for the average middle-income family and low-income family that might be a huge increase in prices as again, their disposable income is less when prices go up and or overall inflation in the economy increases.

A minimum wage in any country or many countries is always a heated topic as there are both positives and negatives for increasing the minimum wage.

Some might say that those who have to work certain jobs should be afforded a living-wage as they might have families and children to support.

Some might say, those who work minimum wage jobs are the less educated and shouldn't be rewarded for anything more than a low wage.

And some might have to work minimum wage jobs as they can't find anything else and it not their fault as they just need job to survive and again maybe to take care of their families.

And then there are the companies who can only hire workers on a minimum wage as their profits margins can't handle anything beyond that amount.

Some of these companies might actually have a heart or conscious but still can't do anything but give workers a minimum wage as that is all they can afford to do.

The 1,121 yen minimum wage is one of the lowest among advanced economies as 1,121 only comes out to $7.32 in US dollars which is very low, as no US worker is going to work for that low amount as it might not even pay for the gas in a person's car.

Some might say Japan and the US very different but still Japanese workers who have to work and get the minimum wage deserve a real living wage to live on and or take care of their families.

But then again, many or some of the small and mid-size companies in Japan and probably most service type companies, can only afford to pay a minimum wage as again their profit margins or so thin they can't afford to even pay the  66 yen increase in the minimum wage.

No disrespect to the new Prime Minister, but every new Prime Minister always says the same thing about improving wage growth or curbing inflation or reducing the prices in the economy, but nothing really gets done or improves, and that's not to blame the Prime Minister in Japan as an economy is very complicated and no Prime Minister or even president of any country alone can't fix and economy

The BOJ is always saying they are closely watching what is happening but nothing really changes and the BOJ is tasked at this time with the challenges of the US tariff situation and then there is the continued inflation situation in Japan and the BOJ has to decide which is the most important priority among the two.

A country's central bank, more than a Prime Minister or a president, has more control over an economy and they have the tools and and strategies needed to try and improve an economy to either slow it down or spend it up by using the key interest rate to try and improve an economy.

Have a nice day!

Japan Real Wages In July: Updated Sept. 28, 2025.

Japan's real wages in July revised down, fall for 7th straight month

Article source: https://mainichi.jp/english/articles/20250926/p2g/00m/0bu/049000c

Ideas:

Real wages are always affected by inflation and the Japanese economy ever since the pandemic has been constrained by consistent inflation, which of course lowers the purchasing power of Japanese consumers.

Wage growth has been a challenge for the Japanese economy as, for the most part, Japan's wages are much lower than other advanced economies and has again been constrained by consistent stagflation and near zero GDP growth for a very long time.

Japan, traditionally, gives two bonuses a year, which may or may not make-up for the lower wages in Japan. But as inflation has even hit companies in Japan summer bonuses sometimes are not what Japanese workers expect which of course means less spending in the Japanese economy.

There is the possibility, that when Japanese companies increased wages in April, which is the normal fiscal start of the new year in Japan, that companies might have depleted any extra funds needed for the traditional summer bonus.

And it must be remembered that up to 70 percent of Japanese workers don't work for the name-brand large Japanese companies but work for small and mid-size companies that don't have the needed resources to match what large Japanese companies give in wage increases, which again might mean less spending in the Japanese economy.

Nominal wages are really not important as they are not adjusted for inflation which means real wages are whats important for a consumer as real wages can determine what a workers purchasing power is or how much they can actually spend in an economy.

And to be sure, consumer spending in the Japanese economy has been constrained for a long time due to consistent inflation in Japan, and consumer spending makes up about 50 percent of Japan's GDP, which is probably not high enough to really improve economic growth.

Again the nominal increase wages just indicates how much inflation has increased in Japan which means that inflation has not decreased much and has put a constraint on much of the Japanese economy and especially again consumer spending in Japan.

The Japanese consumer price index has consistently, ever since the pandemic has been higher than normal or what's good for an economy and its consumers.

As was noted in previous articles even though there were gains in real wages but due to inflation being consistently higher than wage increases they were still not enough to overcome inflation in Japan. which again means consumers in Japan were less better off as wages haven't been able to help the average Japanese consumer with any extra disposable income needed to spend in the Japanese economy.

And again, it must be remembered that only about 30 percent of the Japanese work-force works for the large name-brand companies in Japan. The other 70 percent of the work-force work for small and mid-size companies which don't have the needed resources to pay the same wage increases which means that maybe 70 percent of the Japanese work-force might not have the needed disposable income to spend in the Japanese economy to help the economy grow.

Have a nice day!