Wages data from Japan for March 2025 showed overtime salaries fell at the fastest pace in almost a year.
- total earnings +2.1% y/y (expected +2.3%, prior +3.1%)
- overtime pay -1.1% y/y (prior +2.4%) (overtime pay is often seen as an indicator of business actiivty, ie weakening in this case)
- inflation adjusted, 'real' wages -2.1% y/y (down for the third month in a row)
These results will be an encouragement to the Bank of Japan to hike rates in the near term.
