Growth in Japan’s base salaries held firm even as nominal wage gains decelerated sharply, sending mixed signals to the Bank of Japan two weeks before authorities next meet to decide policy.
Base pay increased 2% in November from a year earlier, the labor ministry reported Thursday. A more stable measure that strips out bonuses and overtime and reduces sampling distortions also increased 2% for full-time workers, pointing to steady underlying momentum.
At the same time, the increase in nominal wages slowed to 0.5%, missing economists’ median estimate of a 2.3% rise and marking the weakest pace since 2021.