Japanese government greenlights pay rises, but companies want growth first
Data from Japan
While the Japanese government wants companies to raise wages, many managers believe it is difficult to do so without achieving growth.
According to a salary survey conducted by Persol Research Institute in May 2022, 63.0% of business leaders in Japan responded that without business growth, it would be difficult to make raises. He said they were prioritizing growth over wage increases.
However, the number of those who thought that “wage increases are an investment” was more than double those who thought that “wage increases mean higher costs”, showing that salary increases are necessary in as an investment for growth. Opinions were divided on whether the government should be involved in this discussion.
At 40.6%, the factor that most influenced the decision to increase salaries was “adhering to budgets and results”, followed by “preventing turnover” (29.4%) and ” economic trends” (27.9%). “Price trends” were the fourth most important factor. Demands from the government or the Japanese Trade Union Confederation (Rengō) have been shown to have little influence on management decisions.
(Translated from Japanese. Banner photo © Pixta.)