However, even at this level, the rate of increase in base pay merely exceeds 2 percent, which is extremely low compared to the wage growth in the United States and Europe.
Still, this increase in wages represents the largest rate of increase achieved in a year since 1980, and it can be viewed as a favorable development for realizing a virtuous cycle between prices and wages. C. Shift in the Price and Wage Norm Triggered by a Big Push Despite considerable improvement in labor market conditions, nominal wages in Japan have not risen sufficiently.