Japan's Wage Paradox: Why Workers Earn More But Live Poorer

Japan experienced historic wage increases in 2024-2025, yet workers feel poorer than ever. Discover why real wages dropped 4% despite salary raises, how 14% of workers fell into the "underclass," and what Japan's minimum wage surge to ¥1,121 means for businesses and the economy.

◆Introduction: Japan's paradox—higher salaries, lower living standards

Despite record-breaking nominal wage increases, Japanese workers face declining purchasing power as inflation outpaces earnings. This episode explores the structural issues behind Japan's wage stagnation, including a 51-year low in labor income share, essential workers earning 30% less than others, and corporate cash reserves hitting ¥636 trillion while wages shrink. Understanding this paradox is crucial for anyone interested in Japan's economic future or considering business expansion into the Japanese market.

◆Note

• The content of this program is intended solely for informational purposes and reflects the personal views of the creators.
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