Reuters Japan Corporate Survey
In brief:
- Over half of Japanese firms plan to raise wages by 3% or more for the next business year, according to a Reuters survey.
- 42% of firms expect wage hikes between 3% and 5%, while 9% foresee increases of 5% to 7%.
- 41% anticipate wage increases between 1% and 3%.
- Survey conducted by Nikkei Research reached 505 companies, with 240 responses.
- More than two-thirds of firms plan wage hikes at the same level or higher than this year.
- Average wage increase this year was 5.1%, the highest in 30 years.
- 52% of respondents intend to keep raising wages despite earnings fluctuations; others do not.
- Some firms express concerns about raising wages during poor earnings due to potential job losses.
- Nearly two-thirds believe Prime Minister Ishiba’s 40% minimum wage increase target is unrealistic.
- Concerns about rising costs impacting smaller companies and risking bankruptcies were noted.
- 83% of respondents prefer office-based work post-COVID, while 17% favor expanding remote work.
- Flexible work arrangements are seen as beneficial for attracting and retaining talent amidst labor shortages.
more to come
This article was written by Eamonn Sheridan at www.forexlive.com.
