Japan’s real wages rise in July for 2nd consecutive month

Japanese workers’ real wages increased 0.4 per cent in July compared to the previous year, marking the second consecutive month of growth, the Ministry of Health, Labour and Welfare reported on Thursday.

Nominal wages, including base pay, overtime, and bonuses, surged 3.6 per cent to 403,490 yen ($$2,800) in July. This marks 31 consecutive months of wage increases, the report added.

Special payments, primarily reflecting bonuses, rose by 6.2 per cent to 118,807 yen in July. However, overtime and other allowances slightly decreased by 0.1 per cent to 19,590 yen, the data showed.

The increase in real, inflation-adjusted wages was slower than the 1.1 per cent growth recorded in June, which had turned positive for the first time in 27 months amid rising consumer prices.

The ministry owed the sustained rise in real wages to more firms paying bonuses compared to the previous year. However, a ministry official noted that the slowdown in real wage growth was due to more companies paying bonuses in June than in July.

Attribution: Xinhua

Subediting: M. S. Salama