Japan's real wages have not increased since peaking in 1996; instead, they have continued to decline amid fluctuations. Several structural factors are at play—shrinking working hours, the retirement of the high-salary generation, and the expansion of part-time workers, all working together.

After 2002, a large number of women entered the workforce, making dual-income households the norm, which temporarily supported income levels. However, this demographic dividend gradually waned. At the same time, the long-term depreciation of the yen has brought import inflation pressures, and the aging society has increased pension burdens, both squeezing economic space.

With overall productivity stagnating, Japan's workforce will likely need to significantly increase work hours to maintain the current standard of living. Unless an efficiency breakthrough is found, this dilemma will be difficult to resolve.