Before work, at the cafeteriaTully's Coffee BARISTA'S BLACKWhile drinking, I remembered what my colleague said yesterday.
"Lately, I've been hearing a lot about wage increases of around 5% in the spring wage negotiations, but I feel like life isn't getting any easier," he said.
Indeed, while wages continue to rise in Japan, real wages are stagnating. In fact, by 2025, there were months in which real wages were negative for more than a year.
Looking at the numbers, wages are rising, so why doesn't the feeling of living change? I was thinking about the reasons behind this while drinking my morning coffee.
background
For the past few years, wage increases of around 5% have been common in Japan's spring wage negotiations. Both companies and labor unions have been pushing for wage increases that are considered "high levels" in order to cope with rising prices.
The problem, however, is that many of these trends lag behind inflation.
As the prices of goods and services rise, wages increase to cover those costs. This creates a cycle where, even though wages rise, the cost of living also increases simultaneously.
Main theme
A phrase that often comes to mind when thinking about this situation is:"Effectively zero wage increase"is.
Wage increases in Japan are mainly composed of "regular salary increases" and "base pay increases."
However, for a long time, base salary increases were suppressed, and regular salary increases were the only focus.
In other words, even if a company's productivity increases, that increase may not be adequately reflected in wages.
Specific facts
One analysis suggests that while Japan's productivity per hour has risen considerably since the 1990s, real wages have not grown nearly as much.
Much of the increased profits have been distributed in other forms, such as shareholder returns.
Therefore, in recent spring wage negotiations, there have been calls to review the "allocation of funds."
For example, some companies are moving towards a system where wage increases are distributed according to individual performance rather than uniformly across the board.
The issue of wages may be evolving beyond simply raising them to a discussion about where the value generated comes from, and how it is distributed to whom.
Summary
When I see the word "wage increase" on the morning news, I tend to think of it as a discussion about the economy.
But perhaps the real issue is something more fundamental: how do we allocate corporate profits and the value of work styles?
As I pondered these things, I took a sip of coffee. It was a morning that made me feel a little more focused, wondering how I could create value in my work today.
