Indicators

Japan Union Group Calls for Continued Wage Growth of 5% or More

  • Wage gains could hold key for PM Ishiba, BOJ’s rate hike path
  • Rengo seeks same target for next year’s pay talks as in 2024

Real wages have fallen back into negative territory after two months of gains.

Photographer: Shoko Takayasu/Bloomberg
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Japan’s largest labor union federation aims to secure wage increases averaging at least 5% in next year’s pay negotiations, in a bid to maintain momentum after major gains this year.

A year ago the annual process began with the same goal, with the final tally for 2024 ultimately showing gains of 5.1%, the biggest increase for the group’s workers in 33 years.