Japan’s nominal wages rise at fastest pace in almost 30 years

Nominal wages rose 4.6% in September compared with a year earlier, marking the largest gain since 1997, according to the labor ministry. | BLOOMBERG

Nov 6, 2026

Japanese workers’ nominal wages have risen at the fastest pace in almost three decades, underscoring sustained momentum in pay growth that will keep the Bank of Japan on track to hike interest rates as soon as December.

Nominal wages rose 4.6% in September compared with a year earlier, marking the largest gain since 1997, the labor ministry reported Friday. Base pay increased 3.7%, while a more stable gauge excluding bonuses, overtime and sampling distortions rose by a record 3.1% for full-time workers.

Real cash earnings — adjusted for inflation excluding rents — climbed 2.2% from a year earlier, accelerating from a revised 1.6% gain in August and beating the consensus estimate of 1.3%. Economists had expected growth to slow due to fewer working days.

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