

Real wages of Japanese workers declined in every month of 2025, highlighting persistent inflationary pressure. In December, real wages fell by 0.1 percent, while nominal wages rose by 2.4 percent. The decline in household purchasing power has fueled public dissatisfaction and strengthened support for the expansionary fiscal policies of the Takaichi government. Economists expect real wages to improve in the coming months as inflation, particularly food prices, begins to ease.

The UK labor market has shown signs of gradual stabilization, and according to recruitment firms, the economy is moving past the worst phase of the hiring downturn. Although permanent hiring continued to decline in January, the pace of contraction slowed to its lowest level in 18 months, and temporary hiring increased again after several months. Despite these developments, the labor market remains fragile, with job vacancies declining and the number of jobseekers rising.