07.01.202623:30:00UTC+00Japanese Overtime Pay Growth Plummets in November, Dipping to 1.20% from 2.10% in October

In a surprising shift, the growth of overtime pay in Japan has noticeably slowed, marking a significant drop from 2.10% in October to just 1.20% in November. Updated data released on January 7, 2026, reveals this substantial decrease, illustrating a softer expansion of remuneration beyond regular working hours on a year-over-year basis.

The decline in October to November highlights a changing trend in overtime compensation, potentially reflecting broader economic conditions affecting Japanese businesses. The previous month's figure of 2.10% still represented growth, albeit modest, compared to the same period a year prior, suggesting that while overtime pay was on a rising trajectory, the pace has notably decelerated as of late.

The factors contributing to this deceleration in overtime pay growth may include increased cost-saving measures by companies or a potential slowdown in industrial activity. These economic dynamics underline the intricate balance between managing labor costs and maintaining workforce motivation and productivity. Stakeholders will likely be watching closely to see if this trend continues into the coming months as businesses and workers adjust to these changing financial landscapes.