Major Japanese companies are heading to increase wages by the largest percentage in decades, amid calls Japanese Prime Minister To do so, with the aim of overcoming decades of fixed wages that have depressed the country’s growth rates.
In this context, Fast Retailing, which owns clothing retail giant Uniqlo, announced that it will increase wages by up to 40%, fueling expectations that major manufacturers will provide strong wage increases.
On the other hand, small companies that provide most jobs in Japan are suffering, and are unable to raise wages following the challenges they faced due to the Corona pandemic.
This represents a challenge for the government and the Bank of Japan as it seeks to ease accommodative policy and stimulate spending following fixed wages over the years prompted households to reduce spending.
