Japan’s PM Hopes Wage Increases Trickle Down To Smaller Businesses

Japanese Prime Minister Shinzo Abe said on Wednesday he expects that moves to raise the wages of the country’s workers will spread from large companies to medium-sized firms.

Increasing wages is important to Abe’s efforts to have monetary stimulus and huge fiscal spending spur consumer spending and pull the country out of 15 years of deflation and uncertain growth.

This month, some of Japan’s biggest companies — including Toyota Motor Corp. (7203.T) — decided to offer workers their biggest pay raises in years.

Some companies “are achieving their pay raise, which (Japan) has not seen in recent years,” Abe said.

However, the vast majority of Japanese employees work for smaller companies, which have not benefited as much from Abe’s economic policies.

A durable economic recovery for Japan needs a cycle of rising profits, wage and prices, economists say.

via Reuters

Content is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at info@marketpulse.com. Visit https://www.marketpulse.com/ to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.

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