Wages

Three Decades of Wage Stagnation — The Structural Mechanisms Behind Japan's Plateau Since the 1997 Peak

Japan's real wages have stagnated for nearly 30 years since peaking at an average annual income of ¥4.67 million in 1997. This article dissects the structural factors behind Japan's position as the lowest real-wage-growth country among major OECD nations — ¥637 trillion in corporate retained earnings, a labor union membership rate of 16.1%, and a non-regular employment rate of 36.8% — and explains why the 2025 spring labor offensive's +5.25% wage increase has not translated into higher real take-home pay.