According to a survey conducted by the Finance Ministry, a whopping 62.1% of companies in Japan have already or plan to raise their base pay in fiscal year 2023. This marks a significant increase from the 38.7% recorded the previous year. It seems that companies are trying to secure talent and match rising prices through these wage hikes. Interestingly, the nonmanufacturing sector saw the most substantial increase, with 56.0% of companies raising wages, up from 28.8% the previous year. In contrast, the manufacturing sector recorded a slightly higher figure of 69.8%, up from 52.0%.   Additionally, there has been a significant increase in the number of companies offering raises of 3% or more. This figure has increased to 37.3% from the previous year's 13.7%. When asked why they chose to increase wages, most companies cited enhancing employee motivation, improving working conditions, and preventing employees from leaving as their main reasons. Furthermore, 64% of companies indic...

Japan’s Prime Minister Fumio Kishida has pledged to push for wage increases among midsize enterprises and rural businesses, a move that could help boost the country’s economy and improve the livelihoods of its citizens. Speaking at the annual May Day rally organized by Rengo, Japan’s largest labor organization, Kishida urged the country to continue the momentum of wage hikes that have been set in motion by the “shunto” spring labor offensive this year.   Kishida’s presence at the May Day rally marks the first time in almost a decade that a Japanese prime minister has attended the event. The last time a prime minister was present at the rally was in 2014 when Shinzo Abe was in power. By attending the event, Kishida is signaling his commitment to improving the lives of Japan’s workers and strengthening ties with Rengo, a key support base of opposition parties.   Rengo, the umbrella organization of labor unions, has been at the forefront of efforts to increase wages in Ja...