🎙️Welcome back to Executive Search in Japan.

In 2025, Japan is experiencing its most dramatic shift in compensation dynamics in over three decades. Wage growth is breaking records—yet real wages continue to fall, creating a paradox for both employees and employers. Amid inflation, an aging workforce, and structural labor shortages, companies are fundamentally rethinking how they compete for—and retain—top talent.

In this episode, we unpack the economic forces, wage trends, and strategic responses defining Japan’s “new normal” in compensation.

🔍 Topics Covered:

• Japan’s Wage Surge in 2025: Average base salary increases above 5%, summer bonuses at all-time highs, and SMEs narrowing the gap with large enterprises.
• The Purchasing Power Paradox: Why real wages are declining despite historic nominal growth—and how this affects consumption and employee sentiment.
• Sector-Specific Winners: Which industries are seeing the fastest wage growth, and what roles are commanding the highest premiums in Tokyo.
• Strategic Retention Measures: How employers are going beyond salary—using bonuses, hybrid work, career mobility, and training investments to hold on to talent.
• Multinationals vs. Domestic Firms: Why global companies are rethinking compensation as Japanese firms raise the bar.
• Salary Negotiation Culture in Japan: What’s changing in how—and when—employees ask for raises, and the growing trend of changing jobs to boost pay.
• Outlook for 2026 and Beyond: Will wage growth continue? And what does this mean for executive search and talent strategy?

Japan’s labor market is in the midst of a structural reset. Tune in as we explore what it means for companies, candidates, and the future of compensation.