Japan's Big Firms Boost Wages for Third Straight Year Amid Solid Corporate Earnings

Major Japanese companies have agreed to increase monthly wages by more than 5% for the third consecutive year in 2026. According to the Japan Business Federation, the average wage increase was 5.37%, with an average hike of 19,752 yen ($125). This marks the first time wage hikes have exceeded 5% for three consecutive years since 1989 through 1991.

The highest wage growth rate was seen in the information and communications sector at 8.28%, followed by printing at 6.81% and construction at 6.76%. The construction sector, which continues to suffer from chronic labor shortages, saw a record-high wage increase of 37,727 yen.

The Japan Business Federation hopes that companies will continue to solidify the strong momentum of wage increases despite major risks such as the crisis in the Middle East.