A recent survey of major Japanese firms has revealed the highest monthly wage increases in 32 years, averaging over 5 percent. The Japan Business Federation, also known as Keidanren, reported an average wage increase of 5.58 percent, the highest since 1992.
Prime Minister Fumio Kishida’s government has been urging companies to raise wages in order to stimulate economic growth and combat deflation. This year’s initial results show a significant increase from last year, with companies such as Toyota Motor Corp and Nippon Steel Corp offering substantial pay hikes.
The survey, which included 244 member firms across 22 industries, showed steelmakers leading with a 12.04 percent increase, followed by machine and metal makers at 6.85 percent. Overall, manufacturers saw an average increase of 5.85 percent.
The Japanese Trade Union Confederation also reported an average pay hike of 5.17 percent among its member unions, exceeding their goal of 5 percent for this year’s negotiations.
This positive trend in wage increases reflects a growing momentum in the Japanese economy, as companies respond to inflation and labor shortages. The final results for this year’s wage negotiations are expected to be released later this summer.
© KYODO