Japanese Wage Increases Lower than Last Year

Japan’s major companies increased wages in this year’s spring negotiations by less on average than last year, according to preliminary data released Monday by the Japan Business Federation or Keidanren, which represents the nation’s largest companies.

The average increase of 7,174 yen per month (about $66) represents a 2.19 percent increase — above 2 percent for the third year running but less than last year’s 2.59 percent hike of 8,502 yen.

Prime Minister Shinzo Abe has repeatedly called for higher wages to help pull the country out of deflation by encouraging personal consumption.

“The wage growth trend is continuing, with most companies saying they have instituted pay-scale raises for three years running,” Keidanren said.

Keidanren released the preliminary data after calculating the average wage change in yen per union member at 62 companies in 15 different industries.

The lobby, which surveyed a total of 249 major firms across 21 industries, said it plans to release final results in early June.

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 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