Japan's Largest Union Plans 5% Pay Rise as UK Raises Real Living Wage

In Northern Ireland, over 5,000 workers employed by nearly 200 Real Living Wage Employers are set to receive a pay increase as the Real Living Wage rises by 85p to £13.45 an hour, a rate calculated to cover actual living costs rather than the lower government minimum wage. Meanwhile, in Japan, the largest labor union, Rengo, plans to seek a wage increase of at least 5% for 2026, aiming to continue the trend of significant pay hikes seen over the past three years amid persistent inflation and labor shortages. Despite these efforts, Japanese companies face challenges in maintaining wage growth due to profit pressures from U.S. tariffs, which could result in somewhat lower wage increases than desired. Japan's wage negotiations are closely watched as indicators of economic health and influence potential monetary policy decisions by the Bank of Japan. The wage growth push in both regions reflects broader struggles worldwide to balance rising living costs, inflation, and corporate profitability. These developments highlight the ongoing tension between the need for higher wages to keep up with inflation and the economic constraints faced by employers.