Japan wage growth cools in manufacturing, picks up in services

Overall figure flat in 2025 as trade risks loom, Nikkei research shows

20250515N JFE

Wage increases at JFE Steel went from 12.47% last year to 6.57% this year. (JFE Steel)

RYOSUKE MATSUI

TOKYO -- Japanese companies have raised wages by an average of 5.49% this year, little changed from 2024, as the pace of increases in manufacturing slows while other sectors catch up, a Nikkei survey shows.

The overall increase was 0.08 percentage point smaller than last year's 5.57%, which was the highest since 1991. This year marks the first decline in four years.

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