Japanese workers’ real wages fell by 2.9% in May, exceeding economists’ forecasts of a 1.7% decline. This marks the largest drop since September 2023, highlighting the growing pressure on Prime Minister Shigeru Ishiba ahead of his upcoming election. Despite nominal wage growth of 1%, smaller bonuses limited salary increases, leading to a slower pace than expected.
Source: https://www.bloomberg.com/news/articles/2025-07-06/japan-s-real-wages-fall-most-in-20-months-in-headache-for-ishiba