Rengo, Japan’s largest union confederation, reported enterprise wage accords
produced an average 5.01% pay rise this year — the third consecutive year above
5% (5.25% last year, 5.10% the year before); Rengo represents about 7 million
members. Maeda Kazutaka, economist at Meiji Yasuda Research Institute, said
strong labor talks and a recent return to positive real wages should boost
consumption and reinforce the Bank of Japan’s case for continued gradual rate
hikes. Analysts expect robust corporate profits and acute labor shortages to
sustain wage momentum, with many forecasting a similar pace next year.
