Reported wage hike close to union figures reported last month
Wages in Japan are increasing at record high levels following the latest labour management talks or shunto between employers and unions, according to reports.
A tally among 135 major firms in Japan revealed that monthly wages are increasing by an average 19,210 yen, the biggest increase since the current survey was adopted in 1976, The Jiji Press reported.
According to the report, this is equivalent to a 5.58% average increase in wages, the fastest in 33 years.
By sector, only cargo transportation experienced a smaller wage increase compared to the previous year, while the remaining 15 sectors showed an increase.
"We were able to achieve a faster pace of wage increases," said the Japan Business Federation as quoted by The Jiji Press. "We hope that structural wage hikes will take root next year."
The announced pay hike is close to the 5.1% average wage increase reported by a union survey last July 1.
The poll, carried out by the Japanese Trade Union Confederation, was based on the responses of 5,284 unions in Japan.
This pay hike of at least five per cent is expected to impact real wages in Japan, according to the Organisation for Economic Co-operation and Development (OECD).
"The results of Shunto are expected to gradually take effect by August," the OECD said.
The OECD previously reported that Japan's real wages cumulatively declined by two per cent from the fourth quarter of 2019 to the fourth quarter of 2023.
