LOGO

Financial news
Home
Knowledge Hub
Japan's June real wages rise for first time in nearly two years
2024-08-06 08:40:48

By Kaori Kaneko and Satoshi Sugiyama


TOKYO (Reuters) -Japan's inflation-adjusted real wages rose in June for the first time in more than two years as nominal pay gained at the fastest pace in nearly three decades, data showed, backing the central bank's view that wage increases are broadening.


However, household spending fell more than expected in the same month, clouding the outlook for the Bank of Japan's plan to steadily raise interest rates.


The latest market rout, which came in the wake of the BOJ's decision last week to raise interest rates, may also dampen consumer sentiment, some analysts say.


Real wages grew 1.1% in June, rising for the first time in 27 months, after a revised 1.3% drop in May, data from the labour ministry showed on Tuesday.


Nominal wages, the average total cash earnings per worker, grew 4.5%, the fastest pace of growth since January 1997, to 498,884 yen ($3,480), the data showed.


Regular pay for permanent workers rose 2.7% in June after a revised 2.6% gain in May, a sign the bumper pay hikes offered by firms in this year's wage negotiations are pushing up household income.


But separate data released on Tuesday showed household spending fell 1.4% in June from a year earlier, more than a median market forecast for a 0.9% drop, suggesting that rising living costs are discouraging consumers from boosting spending.


($1 = 143.3800 yen)

create_account

×
1
personal_identification
2
address_verification
3
employment_financial_profile
4
trading_experience_risk_awareness
5
professional_account_eligibility
6
source_of_funds_compliance
7
corporate_entity_information
8
review_submit

personal_identification

valid_email_address
valid_phone
valid_password
valid_confirm_password
field_required
field_required
field_required
field_required
field_required
field_required
field_required
field_required
field_required

address_verification

field_required
field_required
field_required

employment_financial_profile

field_required
field_required
field_required
field_required
savings_and_investments_excluding_property_help
field_required

trading_experience_risk_awareness

field_required
field_required
field_required
field_required

professional_account_eligibility (optional)

source_of_funds_compliance

field_required

corporate_entity_information

complete_this_section_if_corporate_account

review_submit

review_submit_note
field_required
field_required
field_required

registration_successful

registration_successful_message