Japanese companies have implemented their biggest wage increases in 30 years this year, the country’s largest labor union said Wednesday, citing labor shortages and inflation that is weighing on household incomes.
According to a survey of companies conducted since March by the Rengo trade union, which has about 7 million members, employees’ monthly wages will rise by an average of 5.1% this budget year.
The outcome of the shuntล โ spring negotiations โ are seen as crucial for Japan as policymakers seek to engineer a stronger and more sustainable economic recovery, with higher household incomes and spending offsetting the fall in consumption due to rising living costs.
