Rengo, Japan’s largest union confederation, reported enterprise wage accords produced an average 5.01% pay rise this year — the third consecutive year above 5% (5.25% last year, 5.10% the year before); Rengo represents about 7 million members. Maeda Kazutaka, economist at Meiji Yasuda Research Institute, said strong labor talks and a recent return to positive real wages should boost consumption and reinforce the Bank of Japan’s case for continued gradual rate hikes. Analysts expect robust corpor

Rengo, Japan’s largest union confederation, reported enterprise wage accords produced an average 5.01% pay rise this year — the third consecutive year above 5% (5.25% last year, 5.10% the year before); Rengo represents about 7 million members. Maeda Kazutaka, economist at Meiji Yasuda Research Institute, said strong labor talks and a recent return to positive real wages should boost consumption and reinforce the Bank of Japan’s case for continued gradual rate hikes. Analysts expect robust corporate profits and acute labor shortages to sustain wage momentum, with many forecasting a similar pace next year.