Japan’s Wage Growth Holds Momentum After Small Firms Reach Deals

Japan’s largest labor union group reported that workers under its umbrella secured an average pay increase exceeding 5% in this year’s wage talks even after results from smaller firms were factored into the tally, an outcome that will keep the Bank of Japan on track for a near-term interest rate hike.

Unions under the federation known as Rengo have so far won an average wage gain of 5.08%, according to an updated tally released Friday. While down from an initial 5.26%, the overall figure stayed above the group’s 5% target for a third straight year.