Japan's Real Average Wages Unchanged for 30 Years: "Lost 30 Years"

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Kwon Jae-hee] Over the past 30 years, real wages in Korea have nearly doubled, while in Japan they have essentially remained stagnant, according to a recent study.

On the 20th, Asahi Shimbun reported citing the OECD's 2020 "Purchasing Power Parity (considering price levels)" data, revealing that Japan's real wages stand at 4.24 million yen per year (based on 1 USD = 110 yen, approximately 43.6 million KRW), ranking 22nd among the 35 OECD member countries.

Compared to 1990, this represents an increase of only 180,000 yen (4.4%) over 30 years.

In contrast, Korea's real wages increased 1.9 times over the same period, surpassing Japan as early as 2015.

During the same period, real wages in the United States and the United Kingdom rose by 47.7% and 44.2%, respectively.

Since the early 1990s bubble burst, Japan has experienced a prolonged economic stagnation often referred to as the "Lost 30 Years."

According to nominal GDP figures compiled by the International Monetary Fund (IMF), over the past 30 years, China’s economy has grown 37-fold, the United States 3.5-fold, and Germany 2.3-fold, while Japan’s economy has only increased 1.5-fold.

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