Japan government panel calls for more support as wages hike
Japan must boost support to small businesses which are seeking to raise wages to help support spending on tourism, restaurants and other services impacted by the pandemic, urged private-sector members of a key government panel on Wednesday.
“The key to achieving an economic recovery is to resuscitate service consumption that has been lost due to the pandemic,” highlighted a group of business executives and academics in a proposal submitted to the government’s top economic council, according to Reuters.
They asked that the government ensure that the support to events, tourism and F&B from vaccinations lead to a sustained recovery in consumption, highlighting the need for flexible policy action.
The proposals by the panel members are used to lay the groundwork for the government’s economic policies, and tend to highlight the administration’s priorities.
The government will extend special employment subsidies for companies impacted by the coronavirus pandemic until year-end, said Prime Minister Yoshihide Suga at the council’s meeting.
The move is part of the government’s efforts to encourage firms to raise wages, in particular smaller businesses.
An influential government panel recently recommended raising the national average minimum wage by about 3% to US$8.5 per hour in the current fiscal year.