(MENAFN) Japanese workers experienced their 45th consecutive month of nominal wage increases in September, yet inflation erosion triggered a ninth straight month of real wage contraction, official statistics revealed Thursday.

Total cash compensation—encompassing base salaries and overtime—averaged 297,145 yen (approximately $1,931) per employee, marking a 1.9 percent year-over-year increase, according to the Ministry of Health, Labor and Welfare.

Real purchasing power continues decline
When adjusted for inflation, actual wages dropped 1.4 percent compared to the previous year, perpetuating a troubling trajectory that highlights deteriorating household buying capacity amid escalating consumer prices.

Government targets under pressure
The Japanese government established a target of roughly 1-percent annual real wage growth by fiscal year 2029, though current data suggests significant challenges in achieving this economic benchmark as price pressures continue outstripping nominal earnings gains.

The persistent gap between wage growth and inflation underscores mounting financial strain on Japanese households, despite sustained increases in raw compensation figures spanning nearly four years.

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