Real wages in Japan decreased by 2.9% in March 2023 compared to inflation-adjusted March 2022. It has been reported Kyodo News according to government data.
As noted in the publication, the fall in inflation-adjusted wages is due to rising prices in food, energy and other goods on the backdrop of a special operation, and the rise in prices outpaces wage growth.
The publication said that Prime Minister Fumio Kishida’s government is urging businesses to help raise wages and support the economy in line with inflation.
Previously, a number of major Japanese companies had offered the biggest pay raises in decades. Toyota in particular did this in February.
Separate data showed that the country’s household spending fell 1.9% in March from a year ago, after rising 1.6% in February, the article said.
Japan’s inflation hit 4.3% in January, its highest level since 1981. February 3 reportedThat inflation in Japan has hit consumers, especially the young, severely.