Japan’s 2025 Wage Talks Conclude With Highest Gain in 34 Years

Japan’s annual wage negotiations concluded with the largest pay increase in 34 years, an outcome that supports the central bank’s view that a cycle of higher wages and prices is emerging.

Workers at 5,162 companies affiliated with the nationa’s largest union federation Rengo secured an average wage increase of 5.25% in this year’s negotiations, according to the final update of pay deals announced by the union group on Thursday. While the figure came in lower than the preliminary 5.46% reported in March, it still marks the highest growth rate since 1991. Rengo represents approximately 7 million workers, or around 10% of Japan’s labor force.