Japan’s Real Wages Fell by 1.3% in 2025
Though people are earning more money in Japan, their spending power is less, according to government data released on February 9.
In 2025, the average amount people earned each month in terms of pure numbers actually went up by 2.3%, rising to almost 356,000 yen, which is at present worth about $2,300.
This is what is called a “nominal wage.” But it doesn’t describe the actual value of a person’s salary.
If we look at how much inflation has affected the value of a person’s salary, we get what is called their “real wage.” This shows how much they can actually buy with that money.
And consumer prices went up by 3.7% in 2025 — even more than in 2024, when they went up by 3.2%.
So Japan’s real wages actually fell by 1.3% in 2025. This is the fourth year in a row that real wages have gone down, as salary rises have failed to keep up with rising living costs.
This is a bad sign for the general economy. Because when real wages drop, consumers spend less — and private spending makes up more than half of Japan’s gross domestic product.
During last spring’s labor and management wage negotiations — known in Japan as shunto — major companies agreed to increase nominal wages by an average of 5.39%.
This year’s shunto negotiations are likely to focus on whether Japanese companies are prepared to raise real wages, not just nominal wages.
The country’s largest trade union, the Japanese Trade Union Confederation — also known as RENGO — has said real wages should increase by 1%.
But for now, the cost of living remains high, and real wages continue to fall.
| english | chinse |
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| negotiation | 谈判 |
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