Average Wage Increase in Japan Exceeds 5 Percent for Third Consecutive Year

Tokyo (ANTARA) - Japanese companies have agreed to an average wage increase of 5.01 percent in this year’s spring wage negotiations, marking the third consecutive year the figure has exceeded 5 percent, the nation’s largest trade union confederation said on Friday.

The Japanese Trade Union Confederation, also known as Rengo, said the final tally of wage negotiation results from more than 5,300 member unions showed the average monthly pay increase reached 16,400 yen.

Consumer spending remains sluggish in Japan, as wage growth has only recently begun to outpace rising prices.

Japan’s real wages rose for the fourth straight month in April, but the pace of increase slowed from the previous year’s average of 5.25 percent.

“We accept this result as a step forward toward a society where pay increases are the norm,” said Akira Nidaira, assistant secretary-general at Rengo, during a press conference, adding that small firms had done their best.

Wages at small and medium-sized enterprises rose by an average of 4.69 percent, or 12,866 yen, though this still trails the pace of increases at large corporations.

The figures are based on the wage negotiation results from 5,368 unions as of Wednesday.