Japanese workers’ real wages continued to fall in April, even after reflecting some of the gains from a solid win in annual pay negotiations, in a disappointing result for both Prime Minister Fumio Kishida and the Bank of Japan.
Real cash earnings for Japan’s workers dropped 3.0% from a year earlier in April, slipping for the 13th month as overtime pay showed weakness, the labor ministry reported Tuesday. Economists had forecast a 2.0% decrease.
Nominal cash earnings increased 1.0% from the previous year, also weaker than analysts’ expectation of a 1.8% gain, and suggesting the spring wage negotiation results have had limited impact so far. BOJ officials in the past have suggested 3% wage growth is needed for sustainable inflation.