Japan’s major labor union federation, Rengo, has concluded its final tally of this year’s “shunto” spring wage negotiations. The average wage increase achieved is 5.01%, marking the third consecutive year of raises exceeding 5%. This signifies continued momentum in wage growth amidst ongoing economic recovery efforts. However, smaller and medium-sized enterprises (SMEs) saw a slightly lower average increase of 4.69%, representing an improvement over last year but still falling short of the 5% threshold. The results indicate a disparity in wage-raising capacity between large corporations and SMEs. Rengo’s findings are closely watched as indicators of the broader economic landscape and potential consumer spending. These wage increases are seen as crucial for sustaining Japan’s economic momentum and combating deflationary pressures.