Japan's largest labour union group said on Friday it will seek wage hikes of at least 5% in 2025, similar to this year's hefty increase but economists doubt that another such bump is realistic. The announcement by Rengo means debate about pay rises for next year will begin in earnest.

Japan’s largest labor union federation aims to secure wage increases averaging at least 5% in next year’s pay negotiations, in a bid to maintain momentum after major gains this year, according to local media reports.

Japan’s largest trade union group is going to seek a 5% pay increase for workers at next year’s annual wage negotiations, a move that would likely be welcome by the central bank.