Latest news with #salarygrowth
Japan Times
07-07-2025
- Business
- Japan Times
Real wages fall for fifth straight month in May
Salary growth lagged inflation for a fifth straight month in May, with real wages falling the most in almost two years, according to government data released on Monday. Inflation-adjusted pay declined 2.9% year on year in May, with the inflation figure used for the calculation that month set at 4%. It was the biggest drop since September 2023. Overall nominal wages, including those for part-time workers, rose for a 41st straight month in May to an average of ¥300,141 ($2,069). But the pace of the growth has slowed in recent months. It was 2.3% in March, 2% in April and 1% in May. A major factor in the slowing of growth in May was an 18.7% drop in special pay, which includes bonuses. Base salaries, which show the underlying wage trend, rose 2.1% to ¥268,177 — the 43rd straight month of increases. Even though this year's spring wage negotiations ― known as shuntō ― achieved an agreement to increase wages more than 5%, a 34-year high, Japanese households are still being squeezed. Takahide Kiuchi, executive economist at Nomura Research Institute, wrote in a report Monday that there is still a large gap between the inflation rate and the growth of base salaries. 'It's becoming uncertain that the real wage growth will turn positive by the end of the year,' Kiuchi wrote. Rising food prices have squeezed Japanese households, leading to political parties coming up with measures to counter inflation to woo voters ahead of an Upper House election later this month. | Nico Phillips Japan's inflation is running at about 3% this year, far above the Bank of Japan's 2% target. Consumer inflation was 3.5% in May, with the price of rice more than doubling year on year. High inflation, especially the rising price of food, is a primary focus in the July 20 Upper House election. Political parties are eager to woo voters with inflation countermeasures, such as cutting consumption tax rates and distributing cash handouts. According to a poll by NHK last month, "rising prices" was the second most important issue for voters, following "social security and declining birth rate." The administration of Prime Minister Shigeru Ishiba has been desperately trying to bring down rice prices before the election. Farm minister Shinjiro Koizumi has been working on the issue and managed to achieve some success over the past few weeks. In addition to persistent inflation, U.S. tariffs are posing a risk to wage growth. The tariffs will likely lead to a slowing U.S. economy and pessimism at Japanese corporations, which will affect next year's spring wage negotiations, said Daiju Aoki, regional chief investment officer at UBS SuMi Trust Wealth Management in Tokyo. Japan and the United States are struggling to find common ground in their trade negotiations despite months of dialogue. Japan's priority is to eliminate a new 25% tariff on vehicles. Given that wage growth in the auto industry, a major driver of the Japanese economy, sets the tone for other industries, pay increases next year might decelerate if the tariffs significantly weaken Japanese automakers.
South China Morning Post
07-07-2025
- Business
- South China Morning Post
In Japan, it's getting tougher to make ends meet as wages lag inflation
Japanese workers' real wages dropped by the most since September 2023 as inflation continued to outpace salary growth, posing a growing problem for Prime Minister Shigeru Ishiba ahead of a key election taking place in about two weeks. Real wages declined 2.9 per cent from a year earlier in May, compared to economists' consensus call of a 1.7 per cent fall, the labour ministry reported on Monday. Nominal wages rose 1 per cent from the previous year, climbing at a much slower pace than economists expected. While the drop in real wages shows the pain being felt by voters heading into the election on July 20, the strength in underlying wage trends keeps the Bank of Japan on a path of mulling further interest rate increases. The sharp drop in real wages highlights the persistent strength of inflation and presents a headache for the minority ruling coalition ahead of the coming upper house election. With prices continuing to rise faster than wages, public frustration has grown, pressuring political leaders to come up with more convincing strategies to alleviate the cost-of-living squeeze. Japanese Prime Minister Shigeru Ishiba's Liberal Democratic Party has offered cash handouts as an incentive to voters ahead of a looming election. Photo: Kyodo 'In the ongoing election campaign, candidates often cite real wage figures from this monthly report,' said Sota Takano, a senior economist at Itochu Research Institute. 'Today's release suggests people are struggling with the cost of living – that's a discouraging result for Ishiba.'
Bloomberg
07-07-2025
- Business
- Bloomberg
Japan's Real Wages Fall Most Since 2023 as Inflation Bites
Japanese workers' real wages dropped by the most since September 2023 as inflation continued to outpace salary growth, posing a growing problem for Prime Minister Shigeru Ishiba ahead of a key election taking place in about two weeks. Real wages declined 2.9% from a year earlier in May, compared to economists' consensus call of a 1.7% fall, the labor ministry reported Monday. Nominal wages rose 1% from the previous year, climbing at a much slower pace than economists expected.
Yahoo
04-07-2025
- Business
- Yahoo
10 Aussie jobs with the fastest growing salaries paying up to $165,000 a year: 'High wages'
The jobs with the fastest growing salaries in Australia have been revealed, with some jobs raking in more than $165,000 a year. Average Australian wages have risen just 3.4 per cent, but there are some advertised jobs demonstrating pay rises of more than 25 per cent. New data from job platform SEEK found analysts working in government and defence were seeing the biggest wage growth. It found salaries for advertised jobs had increased 26.8 per cent over the past year, bringing the average salary to $130,117. Taxation consultants took second place, with advertised salaries rising an average of 24.5 per cent to reach $95,375 a year. Operations analysts in banking and financial services were next, with an average 21.1 per cent increase in salary to $98,301 a year. RELATED ATO reveals 10 highest paying jobs in Australia: '$472,475 a year' Superannuation 'red alert' for millions as $1 billion in retirement savings feared lost Woolworths payment change hits dozens of supermarkets The highest paying job to make the list was electrical engineers working in mining, resources and energy. The job has seen advertised salaries increase 18.3 per cent over the past year to $165,917 on average. SEEK senior economist Blair Chapman said the job had seen a relatively rapid growth in advertised salaries. 'The mining sector pays some of the highest wages of any sector and they are increasingly competing with renewable energy providers for roles like electrical engineers, which is likely driving them to offer high wages to keep and attract workers into the sector,' he said. Demand for project administrators in the construction sector have also increased, with salaries up 16.8 per cent to $92,788 on average. "An increase in building approvals and commencements, which were sitting around decade lows at the beginning of 2024, alongside ongoing infrastructure projects, has likely driven an increase in the competition for project administrators," Chapman said. The SEEK data is based on average advertised salaries, comparing February to April, 2024 with February to April, 2025. Here are the jobs with the top 10 fastest-growing salaries, and how much they have increased on average over the past year: Analyst (government and defence): $130,117 up 26.8 per cent Taxation consultation (accounting): $95,375 up 24.5 per cent Operations analyst (banking and financial services: $98,301 up 21.1 per cent Maintenance manager (manufacturing, transport and logistics): $146,613 up 19 per cent Electrical engineer (mining, resources and energy): $165,917 up 18.3 per cent Project administrator (construction): $92,788 up 16.8 per cent Finisher (trades and services): $90,695 up 16.6 per cent Customer service representative (retail and consumer products): $64,027 up 16.2 per cent Membership consultant (sport and recreation): $68,435 up 16.1 per cent Assistant (hospitality and tourism): $70,762 up 15.6 per cent The Australian Taxation Office (ATO) also recently revealed the highest paying jobs in Australia, based on tax return details from the 2022-23 financial year. Surgeons were crowned the winners, earning an average of $472,475 a year. Other medical professions also dominated the list, with anaesthetists in second place with average earnings of $447,193. Here's the top 10 highest paying jobs: Surgeon $472,475 Anaesthetists $447,193 Financial dealer $355,233 Internal medicine specialist $342,457 Psychiatrist $286,146 Other medical practitioners $259,802 Mining engineer $206,423 Judicial or other legal professional $206,408 Chief executive officer or managing director $194,987 Financial investment advisor or manager $191,986 For comparison, the average Australian income was $74,240 a year, while the median income was $55,868 a in retrieving data Sign in to access your portfolio Error in retrieving data
CNA
03-07-2025
- Business
- CNA
Japanese firms agree biggest pay hikes in 34 years, top union group's final tally shows
TOKYO :Japanese companies logged their biggest wage hikes in three decades this year, the nation's largest labour union group said. The final tally of annual labour talk results showed Japanese companies have agreed to raise pay by 5.25 per cent this year, the biggest pay hike in 34 years, the 7 million member-strong group Rengo said on Thursday. The robust wage growth follows an average increase of 5.10 per cent last year and 3.58 per cent the year before, suggesting that solid salary growth is becoming the new norm in a country where wages were stagnant for decades.
