Real wages in Japan fell for a 23rd straight month, suggesting that high inflation is still biting into consumer spending power in the country.
Labor ministry data released Monday showed that real wages fell 1.3% in February from a year ago, accelerating from a revised 1.1% drop in January.
The data showed special payments, which include bonuses, slipped 5.5% year-on-year.
But those pay hikes benefit only a fraction of Japan's workers, given only 16.3% of workers are unionized in the country and most unionized workers are concentrated in large companies.
If real wages continue to decline, consumers may choose to save instead of spend, thereby generating little demand and impetus for prices to rise.
Organizations:
Labor, Bank of Japan's
Locations:
Japan