MNI BRIEF: Japanese Firms Increasingly See Need To Raise Pay
MNI (TOKYO) - The number of Japanese businesses that see the need to raise wages to ensure necessary workers is increasing, supporting the Bank of Japan’s view on wage hikes in fiscal 2025, the BOJ's regional economic report said on Monday.
Some companies are considering raising retail prices, but smaller firms continued to voice concern over difficult profit conditions, making wage hikes harder.
BOJ officials are examining the degree of wage hikes in fiscal 2025 through hearings toward the end of the year and the beginning of next year. (See MNI POLICY: BOJ Rate View Intact, Despite Dovish PM Remarks)
The BOJ also noted the pass-through of cost increases is moderating as import prices slow.
Managers reported that some firms are restricting price hikes or lowering prices as consumers save. Many businesses noted the labour shortage has strengthened, increasing pressure on wages, with reports one firm had considered raising wages in fiscal 2025 despite poor revenue.
Some businesses are also aiming to increase productivity to create resources for wage hikes, the reported added.