Japan Monthly Labour Survey, May 2026: Real Wages Up 1.4%, a Fifth Straight Positive Month After −2.6% a Year AgoA · FULL TRANSLATION
- The May 2026 preliminary release came out on 7 July. Real wages deflated by the CPI excluding imputed rent stood at 84.3, up 1.4% year on year; deflated by the headline CPI they stood at 86.1, up 1.7%. Both bases are shown here; where a single figure appears, it is the former.
- Nominal total cash earnings were 311,165 yen, up 3.2% (establishments with five or more employees). For establishments with 30 or more, earnings were 349,464 yen, up 3.3%.
- A year ago the figure was negative. In May 2025 real wages on the excluding-imputed-rent basis fell 2.6%, with consumer prices up 4.0% against nominal wage growth of just 1.4%. Inflation has since slowed to 1.7% while nominal wages accelerated to 3.2%.
- Real wages have been positive every month since January 2026: +0.7% in January, +2.0% in February, +1.4% in March, +2.0% in April and +1.4% in May, on the excluding-imputed-rent basis.
- Part-time hourly scheduled earnings reached 1,452 yen, up 4.9%, outpacing the 3.4% rise for full-time workers. Total hours worked fell 3.8%.
Real wages are nominal pay adjusted for prices: what the money actually buys. Japan spent more than two years with real wages negative, meaning pay rose but not as fast as prices. That line turned positive in January 2026 and has stayed positive for five months.
First, the basis. The ministry publishes two versions, one deflated by the CPI excluding imputed rent for owner-occupied housing, the other by the headline CPI. The first strips out a category where no money changes hands and sits closer to what households actually spend; the second exists for international comparison. May gives +1.4% and +1.7% respectively. Both are positive, but they differ by 0.3 points, so any citation has to say which one it uses.
Two forces drove the turn. Nominal wages accelerated from +1.4% a year ago to +3.2%, while consumer price inflation fell from 4.0% to 1.7%. The slowdown in prices contributed more than the pay rises did.
In the detail, part-time hourly pay rose 4.9% against 3.4% for full-time workers. Total hours worked fell 3.8%, so part of the earnings gain reflects hourly rates rather than volume.
For domestic demand this matters: restored purchasing power supports restaurants, travel and retail. It is also one of the indicators the BOJ weighs when considering rate rises.
The risk sits upstream. Domestic corporate goods prices are running above 7%. If that reaches consumer prices, the positive run may not hold. This site tracks both bases each month from now on.
Translated from the Ministry of Health, Labour and Welfare, "Monthly Labour Survey, May 2026 (Reiwa 8) Preliminary Results," released 7 July 2026. Figures in parentheses are year-on-year changes; unless noted, results cover establishments with five or more employees.
1. NOMINAL WAGES (average per worker)
All employment types: total cash earnings, establishments with five or more employees, 311,165 yen (up 3.2%); establishments with 30 or more, 349,464 yen (up 3.3%). Contractual cash earnings 295,945 yen (up 3.0%). Scheduled earnings 275,942 yen (up 3.0%). Special cash earnings 15,220 yen (up 5.2%).
Full-time workers: total cash earnings 400,312 yen (up 3.5%); scheduled earnings 351,163 yen (up 3.4%).
Part-time workers: total cash earnings 113,759 yen (up 1.5%); scheduled earnings 109,373 yen (up 1.4%); hourly scheduled earnings 1,452 yen (up 4.9%).
2. REAL WAGE INDEX (2020 average = 100)
Deflated by the consumer price index excluding imputed rent for owner-occupied housing: total cash earnings 84.3 (up 1.4%). Reference: that CPI rose 1.7% year on year.
Deflated by the headline consumer price index: total cash earnings 86.1 (up 1.7%). Reference: that CPI rose 1.5% year on year.
3. WAGES AT COMMON ESTABLISHMENTS. All employment types: total cash earnings up 2.9%, scheduled earnings up 2.5%. Full-time workers: total cash earnings up 2.8%, scheduled earnings up 2.4%. Part-time workers: total cash earnings up 3.0%, scheduled earnings up 2.6%.
RECENT MONTHS, YEAR ON YEAR. Total cash earnings: May 2025 +1.4, June +3.1, July +3.4, August +1.3, September +2.1, October +2.5, November +1.7, December +2.4, January 2026 +2.5, February +3.4, March +3.1, April +3.6 (revised), May +3.2.
Real wages deflated by CPI excluding imputed rent: May 2025 −2.6, June −0.8, July −0.2, August −1.7, September −1.3, October −0.8, November −1.6, December −0.1, January 2026 +0.7, February +2.0, March +1.4, April +2.0 (revised), May +1.4.
Real wages deflated by headline CPI: January 2026 +1.0, February +2.1, March +1.6, April +2.2 (revised), May +1.7.
HOURS WORKED. Total hours worked fell 3.8%; scheduled hours fell 3.0%; non-scheduled hours fell 1.2%; non-scheduled hours in manufacturing rose 0.8%.
NOTES. 1. Preliminary figures may be revised. 2. The two real wage series are constructed as follows: to show the purchasing power of wages, the CPI excluding imputed rent, which is limited to goods and services actually transacted, is used; for international comparison, the headline CPI is used. 3. This survey covered 33,078 establishments, of which 22,471 responded, a response rate of 67.9%.