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Japan's Real Wages Plummet 2.8%, 11th Decline

1/8/2026

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Story summary
  • Real wages in Japan fell 2.8% in November, the 11th straight decline, driven by a sharp drop in one-off bonus payments.
  • Average nominal wages rose 0.5%, the slowest growth since December 2021, amid a 17% drop in special payments.
  • Regular pay increased by 2.0% while overtime pay rose by 1.2%.
  • The Bank of Japan raised its policy rate to 0.75%, a 30-year high, and expects wage gains through labor negotiations.