Japan PM urges companies to increase wages next year

Prime Minister Fumio Kishida said he would do everything possible to create an environment for firms to raise wages.
By: | December 24, 2021

Such measures would include drawing up rules on non-financial disclosure for firms in the year starting in April and raising salaries, Kishida said at the end of the parliamentary session recently.

Raising wages is a key pillar of Kishida’s “New Capitalism” plans to support the economy by better distributing the fruits of growth.

“Distribution by raising pay is not a cost but an investment in the future. Paying properly creates the foundation for firms to create value sustainably,” he said.

The government raised its monthly view of the economy for the first time since summer last year, reflecting confidence in the recovery even as the Omicron variant of the virus looms.

In its report for this month, the Cabinet Office said the economy has picked up recently as the fallout from the pandemic gradually eases. The government raised its view on consumption, business confidence, and the jobs market.

Even with the new variant, the Cabinet Office still sees the economy picking up in the short term, and supportive government policies and progress in the country’s return to a semblance of normal life should help.

READ: Major Japan lobby says it will not set wage hike goal for businesses

After a summer wave of COVID-19 cases triggered another state of emergency, Japan is expected to rebound this quarter. Since then, curbs have been lifted and Kishida has unveiled a larger-than-expected stimulus package, according to Bloomberg.