- Real wages fell 2.8% in November, influenced by special payment data
- Average nominal wages rose 0.5%, slowest since December 2021
- Inflation continued to outpace wage growth in November
TOKYO, Jan 8 (Reuters) - Japan's real wages fell in November at the fastest pace since last January, dragged down by a sharp drop in one-off bonus payments, preliminary government data showed on Thursday.
The underlying trend of inflation outpacing wage growth, meanwhile, has not changed, posing a challenge for the Bank of Japan, which has signalled it would continue interest rate hikes through this year.
Labour ministry data showed inflation-adjusted real wages, a key barometer of consumer purchasing power, fell 2.8% in November from a year earlier. That matched a decline in January, which had marked the sharpest drop since a September 2023 figure of 2.9%.
The November number was also worse than a revised 0.8% fall in October and extended a losing streak for the 11th straight month.
BONUS DATA WEIGHS ON WAGES, INFLATION REMAINS HIGH
In a similar vein, average nominal wages, or total cash earnings, rose at the slowest pace since December 2021, edging up just 0.5% from a year earlier to 310,202 yen ($1,983).
Both statistics were influenced by a 17% plunge in special payments - mostly one-time bonuses - an indicator that tends to be volatile outside of summer and winter bonus months.
A labour ministry official said special payment figures in November tend to be lower at a preliminary stage, since few firms' winter bonus data are reflected at that point.
The November number was also worse than a revised 0.8% fall in October and extended a losing streak for the 11th straight month.
BONUS DATA WEIGHS ON WAGES, INFLATION REMAINS HIGH
In a similar vein, average nominal wages, or total cash earnings, rose at the slowest pace since December 2021, edging up just 0.5% from a year earlier to 310,202 yen ($1,983).
Both statistics were influenced by a 17% plunge in special payments - mostly one-time bonuses - an indicator that tends to be volatile outside of summer and winter bonus months.
A labour ministry official said special payment figures in November tend to be lower at a preliminary stage, since few firms' winter bonus data are reflected at that point.
($1 = 156.4300 yen)
Reporting by Satoshi Sugiyama; Editing by Joe Bavier
Source: Reuters