AsianFin -- Japanese companies have agreed to an average wage increase of 5.25% in 2025—the largest in 34 years—according to a tally released Thursday by Rengo, the country’s largest labor union federation.

The jump follows a 5.10% rise last year and 3.58% in 2023, reinforcing signs that sustained wage growth is taking hold in an economy long plagued by stagnant pay. Rengo, which represents 7 million workers, said the gains reflect mounting pressure from both inflation and persistent labor shortages.