Japan Nominal Wage Growth Hits 16-Month High

2026-06-04 23:36 By Chusnul Chotimah 1 min. read

Average cash earnings in Japan grew by 3.5% yoy in April 2026, accelerating from an upwardly revised 3.1% rise in the previous month and surpassing market forecasts of 3.2%.

It was the 52nd straight month of growth in nominal wages and the fastest pace since December 2024.

Earnings rose across all sectors, including construction (4.3%), manufacturing (4.5%), mining & quarrying (1.1%), utilities (4.5%), information and communications (5.6%), transport and postal services (7.2%), wholesale and retail trade (2.8%), finance and insurance (11.2%), real estate (1.2%), the food industry (1.8%), and education (2.4%).

Base pay increased 3.4%, unchanged from a revised figure in March.

Meanwhile, inflation-adjusted real wages rose 1.9% yoy in April, marking a fourth straight month of increase and accelerating from an upwardly revised 1.4% gain in the previous month.

This was the longest stretch of gains in four years and fueled speculation that the BoJ may raise interest rates this month.



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