Japanese firms agree to 5.26% wage hike, top union group's preliminary data shows

Group 1 - Japanese companies have agreed to raise wages by more than 5% for the third consecutive year, with an average wage hike of 5.26% reported by Rengo, Japan's largest labor union umbrella group [1] - Last year's initial wage increase was 5.46%, later revised to a final 5.25%, marking the largest pay rise in 34 years [2] - Major companies like Toyota Motor, Hitachi, and NEC have met union demands for large pay increases, reflecting intense competition for workers [3] Group 2 - Rengo's member unions are seeking an average wage hike of 5.94%, slightly below last year's demand of 6.09% [2] - Higher oil prices could intensify upward pressure on wages, potentially leading to a cycle of rising wages and prices as workers demand increases to protect their living standards [4] - Despite nominal pay increases, real wages have struggled to turn positive, affecting household purchasing power as inflation outpaces pay gains [5]