You'll Be Surprised at Just How Far Wages Have Fallen In Japan............

August 3, 2015

One target of Abenomics is to raise earnings and, looking at the OECD's recent survey of the Japanese economy, we can see why:

 

Japan: Real vs Nominal Wages (YoY, % Change), 2003-2015

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Source: OECD, Japan Survey, April 2015

 

Since 2013, real wages have fallen by approximately 5%, despite an increase in nominal wages. This means that attempts to spark inflation have been successful, but Japanese people are worse off because their real wage income has actually declined. This will put even more pressure on Shinzo Abe's administration to push corporates to increase salaries.  

 

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