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Japanese companies buckle as Abe puts pressure to raise wages

Last year, the average increase among 312 major companies was 2.11% before bonuses, according to labour ministry figures

Stanley White | Reuters  |  Tokyo 

Japan Inc is running out of excuses in the face of Prime Minister Shinzo Abe's calls for wage rises of 3 per cent or more. The nation is having its best run of economic growth in a decade, stocks prices are the highest in 26 years, and corporate profits are near an all-time high. At the same time, the labour market, which is already the tightest among major economies, is only set to get tighter as the nation’s population both shrivels and ages rapidly. And as annual negotiations with labour unions start to ramp up, there are signs that some big companies may be bending as ...

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First Published: Sun, January 07 2018. 02:01 IST