Japan Average Wages Rise - Nasdaq.com
The nation has been mired in deflation and economic stagnation since the economic bubble burst around 1990. After adjustment for inflation, however, wages actually declined 1.5% on year, meaning that wage increases are not keeping up with prices, the labor ministry figures released Tuesday showed. Still, the size of decline was the smallest since March, reflecting both nominal wage gains and lower inflation as a result of recent sharp falls in oil prices . Last year real wages declined an average 2.5%, weakening consumption and helping push the economy into a brief recession. Increases in nominal wages were outweighed by higher consumer prices following the first sales tax increase in 17 years visit in April. Prime Minister Shinzo Abe hopes tapes his economic revival plan, known as Abenomics, and sustained pay increases will eventually restore consumer confidence and reignite Japan's private consumption, putting Japan on a path of self- sustaining economic growth. Mr. Abe pins great hopes on ongoing annual source wage negotiations between large employers and major labor unions for the coming business year. The conclusion of most wage talks will come around March 18.
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