Japan's labor market has gradually recovered after the pandemic. In 2023, the wage increase rate surpassed expectations. In addition, Japan's unemployment rate dropped from 2.8 percent in 2020 to around 2.5 percent in November 2023, according to the Japanese Ministry of the Interior. In appearance, the country is in total employment. Behind these promising figures, however, lies a more problematic reality. The wage increase was mainly driven by soaring prices rather than improvements in the labor market.