Japan's real wages in November fell 3.8% from a year earlier, their fastest rate in more than eight years, as inflation undercut workers' pay, dealing a blow to policymakers' hopes of achieving faster economic growth led by higher wages, reports Reuters, citing the labour ministry. November's 3.8% annual fall in inflation-adjusted real wages was the greatest since a 4.1% drop in May 2014, when they had been affected by rises in sales tax, the labour ministry said. Nominal annual pay growth slowed markedly in November, even though wages were up for an 11th straight month reflecting slow recovery from the continued impact of Covid-19. The data underscored the challenge for Prime Minister Fumio Kishida's government in seeking faster wage hikes that outpace rising inflation, encourage spending and stimulate the economy.

Earlier this week, Statistics Japan published data which showed Japan’s unemployment rate stood at 2.4%, down 0.3% over the year and down 0.2% compared to the previous month.