Japan Real Wages Decline for a Record 2 Years: Nikkei and Poverty
Japan Real Wages Decline for a Record 2 Years: Nikkei and Poverty
Noriko Watanabe and Kanako Mita
Modern Tokyo Times
The government of Japan under Prime Minister Fumio Kishida broke the unwanted record of 2 years of continuous decline in real wages (figures are announced monthly).
Simultaneously, while many Japanese people are getting poorer – concerning the cost of living – the rich, internally and externally, are making huge profits by investing in the Nikkei stock market. Therefore, growing inequality is increasing.
Real wages can’t keep up with the convulsions of inflation. Accordingly, a drop of 2.5% in real wages in March compared with one year earlier continues to bring gloom.
Also, the decline of 2.5% is deceptive. After all, unlike wealthier workers at major Japanese and foreign companies (permanent workers), the working poor and temporary staff (including part-time workers) didn’t obtain the same rise in wages that were meant to offset the increase in the cost of living.
Data on real wages began to be compiled in 1991. Accordingly, this statistic highlights the reality of Kishida’s “new capitalism.”
The minimum hourly adult rate is 950 yen (£4.89) in the majority of prefectures in Japan. This compares with 11.44 pounds (2231 yen) in the United Kingdom. Therefore, the minimum hourly rate in Tokyo of 1113 is also paltry compared with many developed nations.
It also should be mentioned that people in Japan need to pay a 10% consumption tax every time they go shopping for food and other essential items (fruit and other foodstuffs are higher in Japan).
Lee Jay Walker (Modern Tokyo Times analyst) says, “Wealthy Japanese nationals and foreign investors are getting richer via the stock market and are buying real estate. In the opposite direction, a record 24 months of a decline in real wages. Therefore, the gap between the rich and poor is growing under Kishida’s ‘new capitalism’ – which is a sham via fake progressive words.”
Pension worries in Japan and the high cost of living entail that just over 33% of people aged between 70 and 74 are still in the workforce. This figure is over 50% for people in the age bracket of 65 and 69.
Average wages (OECD Report 2021) stipulated that Japan ranks 24 out of the 35 leading nations.
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