Japanese Wage Hike Hits 16 Year High

The average monthly wage hike for major Japanese companies through annual wage talks this spring exceeded 7,000 for the first time in 16 years, the Japan Business Federation said Wednesday.

The hike, including a seniority-based automatic increase and a basic pay rise, rose 1,494 yen year on year to 7,697 yen as earnings growth under the economic recovery coincided with the government’s request for wage hikes, said the business lobby known as Keidanren.

The percentage gain stood at 2.39 percent topping 2 percent for the first time in 15 years.

The average figure was for 41 companies among 240 firms in 20 industrial sectors subjected to a Keidanren survey. Final data will be made available in early June.

The average wage increase rose 2.50 percent to 7,900 yen for the manufacturing sector.

The average hike expanded 3.33 percent from a year earlier to 9,598 yen for the machinery and metal sector and 2.78 percent to 9,225 yen for the auto sector, while that for the food sector narrowed to 1.68 percent from 1.74 percent.

via Mainichi

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza