Decades-high wage hikes on the cards in Japan but are unlikely to ease cost pressures

, which began in 1956 during the post-war boom and peaked in 1974 with a record 33 per cent rise in pay before plunging after the burst of the asset bubble, has by and large concluded for large firms last week. The process is set to kick off for SMEs, typically between April and June.

On March 17, he blamed low wages and the resulting cost pressures as having resulted in fewer babies – childbirths fell below 800,000 in 2022 for the first time in recorded history since 1899 – as he promised to tackle wage disparities for women, as well as “irregular workers” on part-time contracts, who account for four in 10 in the workforce.

The practice of the government encroaching on the wage negotiations process began in 2013 under the late PM Shinzo Abe, who said in his posthumous memoir that while the practice “may seem socialist”, it was necessary to break Japan out of a decades-old deflationary funk.A push that has largely fallen on deaf ears is now being heeded to some extent for two reasons: a tight labour market, with unemployment at a three-year low of 2.4 per cent in January, and soaring inflation.

SMEs are not only relatively less profitable, they also hold limited cash reserves, he added. And unlike the large companies with businesses abroad, which can benefit from the yen depreciation, SMEs that rely on imports will face leaner margins. Four in 10 SMEs intend to raise pay, but by less than 3 per cent, according to a poll by the Japan Chamber of Commerce and Industry.

Elsewhere, electronics firms Hitachi and Toshiba, as well as flag carrier Japan Airlines, are raising base wages by 7,000 yen a month, while Sapporo Breweries will up wages by 9,000 yen a month. Nissan will increase monthly wages by an average of 12,000 yen, and offer annual bonuses worth 5.5 months of salary.

Singapore Latest News, Singapore Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

As Japan and South Korea make amends, the challenge now is to make it lastFor one thing, South Korea is against Japan’s Unesco World Heritage status bid for the gold mines on Sado Island. Read more at straitstimes.com.
Source: STForeignDesk - 🏆 4. / 71 Read more »

French minister to raise protection of minors with Pornhub's new ownersPARIS : A French government minister will meet the new owners of the pornography website Pornhub to ensure minors are protected and that the site does not break any laws, he said on his Twitter account on Friday.Pornhub owner MindGeek has been at the centre of the adult entertainment industry since the ad
Source: ChannelNewsAsia - 🏆 6. / 66 Read more »

Beijing may allow foreign financial firms to list in China - ex-finance ministerSHANGHAI : China will encourage foreign capital to participate in its financial markets and may allow foreign-funded financial institutions to go public in the country when 'conditions are ripe', local media quoted a former finance minister as saying on Saturday.Such moves would be in line with the countr
Source: ChannelNewsAsia - 🏆 6. / 66 Read more »

Beijing may allow foreign financial firms to list in China: Ex-finance minister Lou JiweiIn recent months, China has sped up fund license approvals for foreign asset managers. Read more at straitstimes.com.
Source: STForeignDesk - 🏆 4. / 71 Read more »

Japan, Germany agree to carefully monitor markets, coordinate as neededTOKYO : Japan and Germany agreed on Saturday to coordinate closely on financial jitters stemming from problems among Western banks while carefully monitoring global markets and economy, a Japanese finance ministry official told Reuters. The agreement came in a 45-minute meeting between Japanese Finance
Source: ChannelNewsAsia - 🏆 6. / 66 Read more »

Germany, Japan vow to deepen ties on defence, raw materialsBerlin and Tokyo are looking to lessen their dependence on China for raw materials. Read more at straitstimes.com.
Source: STForeignDesk - 🏆 4. / 71 Read more »