January was the 22nd month of real salary declines in Japan

As compensation increases failed to keep up with inflation, real earnings for Japanese workers decreased in January for the 22nd consecutive month, according to official statistics released on Thursday.

According to the Ministry of Health, Labor and Welfare, inflation-adjusted real earnings fell 0.6% from a year ago after falling 2.1% in December. This was the lowest loss in 13 months due to easing pricing pressures.

According to statistics, nominal wages—which are defined as the average monthly cash earnings per worker, including base and overtime pay—grew 2.0 percent year over year in January to 282,270 yen ($1,900), marking a 25-month trend of growth, according to Xinhua news agency.

While overtime pay and other nonscheduled earnings increased by 0.4% to 18,604 yen, average base pay and other scheduled wages increased by 1.3% to 269,359 yen.

As the central bank phases down its enormous stimulus program, salaries in the nation are considered as a key sign of whether a cycle of pay rises over inflation is going to be formed.

According to Kyodo news, the Japanese Trade Union Confederation, or Rengo, said that it wants to bargain for wage increases of at least 5%.

While several large corporations have made significant salary announcements—automaker Honda Motor Co., for example, has agreed to an annual pay raise of 5.6%—it is unclear whether medium-sized and small firms, which employ around 70% of the labor force, would follow suit.