According to the latest monthly labor statistics released by the Ministry of Health, Labour and Welfare, Japan's real wages saw a decrease of 1.3% in 2025, continuing a downward trend for the fourth year in a row. While nominal wages increased by over 2% for the second consecutive year, the rise in consumer prices outpaced this growth, leading to the decline in real wages. Notably, the cash earnings, which reflect the nominal wages, increased by 2.3%, reaching a total of ¥355,919, marking five consecutive years of positive growth. This rise is particularly noteworthy as it is the highest growth rate observed since 1992.

The increase in cash earnings was mainly driven by a rise in basic salaries, which recorded a 2.0% increase, notching ¥267,551. Workers in full-time positions saw an even more substantial increase of 2.5% to ¥340,657, the highest growth rate since the survey's inception. This growth in pay is likely attributed to the ongoing labor negotiations during the spring wage talks, which typically aim to secure higher wages for employees. Bonuses, which are included in special payments, also rose by 3.8% to ¥68,483.

In contrast to the overall picture, part-time workers faced different outcomes, with their wages less robust. The Consumer Price Index (CPI), which is used to calculate real wages excluding imputed rent for homeowners, surged by 3.7% year-on-year, marking a wider increase than seen in the previous year. This burgeoning inflation has contributed significantly to the continued decline in real wages, raising concerns about the purchasing power of Japanese workers as the economy grapples with rising living costs, highlighting a persistent challenge faced by policymakers in Japan.