To realize higher wages than this year, we should aim for more than 2% growth = Advisory Council | Reuters

At the Council on Economic and Fiscal Policy held by the government on October 5, private-sector lawmakers emphasized the importance of economic growth that would enable wage increases amid downward pressure on the Japanese economy due to interest rate hikes in Europe and the United States. Photographed in Tokyo in August, 2022. REUTERS/Issei Kato

TOKYO (Archyde.com) – Private-sector lawmakers stressed the importance of economic growth that would enable wage increases amid downward pressure on the Japanese economy due to interest rate hikes in Europe and the United States, at a government meeting held on Thursday. In order to raise wages above this year’s level, which was 2.07% according to the federation, macroeconomic management aiming for real economic growth in the 2% to mid-2% range is necessary. He pointed out that the demand shortage (GDP gap) of about 15 trillion yen (April-June quarter) will shrink considerably through 2023.

In order to promote wage increases, he pointed out the need to create an environment in which small and medium-sized enterprises can properly pass on their costs, and to make wage increases a condition for government support for small and medium-sized enterprises.

In addition to improving productivity and increasing wages, he also advocated the promotion of labor movement to growth fields, an early increase in the minimum wage to 1,000 yen or more, and the regularization of women’s employment.

In addition, in order to promote decarbonization (GX), we are proposing the utilization of nuclear power plants and the effective use of surplus electricity through storage batteries and pumped water. He points out that Japan has the largest number of GX-related patent applications in the world, and that government support should be strengthened for smooth commercialization with a view to overseas expansion.

Prime Minister Fumio Kishida delivered a speech before the end of the meeting. In order to put the Japanese economy on a high growth path, the comprehensive economic measures to be formulated this time will take all possible measures to support people who are in a difficult situation due to soaring prices, while also promoting the recovery of inbound tourism and agriculture. He said he would spread the merits of the weaker yen to regional areas through such means as promoting the export of marine products.

In order to achieve structural wage increases, he once again reaffirmed his recognition that, in addition to continuing wage increases, including the minimum wage, “investment in people” is essential.

(Yoshifumi Takemoto, Kentaro Sugiyama)

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