Japanese workers get highest pay increase in more than 3 decades

Major companies in Japan have agreed to raise wages by an average of more than 5% this year, marking the highest wage increase in 34 years, according to Reuters on March 14.

Many large Japanese corporations said they have fully met the demands of labor unions for wage increases.

As annual labor talks end this week, many of Japan's biggest companies say they have raised wages to the maximum level demanded by labor unions.

For example, Toyota Corporation agreed to increase wages to the required level of 24,450 yen/month (4.2 million VND/month). Mitsubishi Corporation even increased beyond the requested level, to an average of 18,000 yen/month.

The Rengo labor union with 7 million members has proposed an average wage increase of 5.46% in 2025. This is the third consecutive year that Rengo has demanded a large wage increase and is likely to mark the highest increase in 34 years.

Wage increases have long been seen as a necessary measure to cope with high inflation, which has increased the cost of living.

However, economists are still not too optimistic, saying that wage increases may not be implemented at a level sufficient to stimulate consumer demand.

Consumer inflation, which includes fresh food prices, rose 4 percent in January this year, the highest increase in two years.

In an example reflecting the trend of Japanese people tightening their spending, Nana Nagayama (51 years old) traveled from Hokkaido to Tokyo to attend her daughter's graduation ceremony. However, her husband decided not to go with her to save money because he was worried that the salary increase would not be enough to make the family comfortable.

In a move that shows boosting workers' wages is a top priority, Prime Minister Shigeru Ishiba this week directed authorities to look for ways to encourage higher pay for truck drivers.

The Tokyo government is also studying measures to allow small companies to raise wages for workers.

Source: https://thanhnien.vn/lao-dong-nhat-ban-duoc-tang-luong-cao-nhat-trong-hon-3-thap-nien-185250314193031763.htm