Japan: Experiencing wage pressure - BBH

Japan is also experiencing little wage pressure despite its tight labor market conditions as cash wages fell 0.4% year-over-year in June, which was a shock, according to analysts at BBH.  

Key Quotes

“Economists expected a 0.5% gain after 0.7% in May.   It is even worse when adjusted for the inflation.  Real cash earnings fell 0.8% year-over-year.  It is the weakest in two years.  Prime Minister Kuroda has not recovered in the polls.  This week's cabinet reshuffle may better protect the LDP, but it is not clear if there is an alternative to Abenomics.”