Japan Real Wages November 2025: Paychecks Shrink for 11th Straight Month
Japan's real wages fell 2.8% in November 2025, marking 11 months of decline. As inflation outpaces pay, the Bank of Japan awaits spring wage talks for its next rate move.
It's the 11th straight month of shrinking paychecks. Japan's real wages just took their steepest dive in nearly a year as inflation continues to devour nominal gains. According to the Ministry of Health, Labor and Welfare, inflation-adjusted wages in November 2025 fell by 2.8% from a year earlier.
The Impact of Japan Real Wages November 2025 Decline
The gap between rising costs and static pay is widening. While nominal wages grew by 0.5% to reach 310,202 yen ($1,980), they were completely offset by a 3.3% surge in consumer prices. This marks the sharpest drop in real wages since last January. A significant factor was the 17.0% plunge in special earnings, a volatile component that includes bonuses, which dragged down the overall average.
BoJ Watch: Why Spring Wage Talks Are Critical
The Bank of Japan (BoJ) is keeping a close eye on these figures. After hiking interest rates to a 30-year high last month, central bankers need to see robust wage growth to justify further tightening. All eyes are now on the upcoming spring wage negotiations, known as Shunto. Government officials noted that December data will provide a clearer picture as it reflects winter bonuses, which historically helped push real wages into positive territory during specific months in 2024.
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