Major Japanese companies offer large pay hikes, fueling hope of beating deflation

It's about time! If all goes well, we'll be getting a stronger yen as well.

Awesome. Hope it continues.

The world's biggest automaker, which currently offers 228,000 yen per month for each new university graduate, will decide on how much to increase it by later.

When people with no degrees or specialized skills can get the same working at a convenience store or izakaya that is not a good sign for the health of Japan Inc. and its' so-called "labor shortage".

When people with no degrees or specialized skills can get the same working at a convenience store or izakaya that is not a good sign for the health of Japan Inc. and its' so-called "labor shortage".

Agreed but large companies pay bonuses twice a year, provide for national and company specific insurance, grant rather generous retirement payouts that increase the longer you are with the company and provide paid holidays as well as leave for having a baby and so on. It is very stable and comfortable to work for a large company.

Are they kidding? That would require that everyone from babies to centennials are employees at Toyota and Nissan. lol Otherwise only an insignificant percentage of population gets those wage hikes and nothing changes.

It is very stable and comfortable to work for a large company.

Those benefits should be a given for one of the world's largest profit makers, not in exchange for poverty wages.

Otherwise only an insignificant percentage of population gets those wage hikes and nothing changes.

Exactly..228,000 yen per month for each new university graduate exerts massive downward pressure on wages on all labor in Japan.

Given the upward trend, labor unions have grown more confident in their demands.

Japanese labour unions have nothing to be confident about.

They have been more than useless for 30 years.

Totally complicit with the mire Japan now finds itself in.

Their inertia has accelerated Japan's demise.

Better to relocate to America where the real money is made.

The vast majority (95%) of Japanese are working for small and medium-sized companies. Pay hikes at big corporations won’t bring Japan out of deflation.

Most of their workforce are 請負 and 派遣, and those poor buggers certainly won’t be seeing any pay increases. That’s why they hire them.

Good for the workers at these large companies but for the rest of us lowly contract workers it probably means nothing but perhaps prices and the cost of living going up even more - ex. many Gaba eikawa instructors have been striking since June of last year(they were striking outside Gaba’s Ginza branch today) for a small cost of living wage increase of only ¥200 yen. Since then, the company has announced policies(requirement to register as Quilified Invoice issuers) that will result in instructors making even less

"fuels hopes of beating deflation", what world does this writer live in?! We're not in China, everybody's grocery bills have nearly doubled since Covid.

Granted, land prices are falling on any inflation adjusted measure, but daily necessities keep going UP!

HopeSpringsEternal

"fuels hopes of beating deflation", what world does this writer live in?! We're not in China, everybody's grocery bills have nearly doubled since Covid.

Yes, our groceries have increased but not doubled. Less than 20%.

If all goes well, we'll be getting a stronger yen as well.

stronger yen will just make Japans exports more expensive and repatriated profits will drop as the yen strengthens, profits drop companies will resist further wage hikes. back to　the depreciation cycle again.

Japan has rarely had a strong yen with growing wages.

It is interesting to know that Japan has a "deflation" problem. I heard that first time in my life of almost 70 years. I think that's interesting and have to salute the people of Japan/Nippon including its governments.

Some believe Govt price inflation statistics, others their own eyes. My favorite, olive oil but anything imported has shot the roof with Yen falling about 1/3 in last 3yrs. Food commodities all traded in $dollars, so pretty obvious Govt. stat's full you know what!

If I get pay increase, I safe every penny of the increase. Deflation is here to stay.

HopeSpringsEternalToday  08:23 pm JST

"fuels hopes of beating deflation", what world does this writer live in?! We're not in China, everybody's grocery bills have nearly doubled since Covid.

Granted, land prices are falling on any inflation adjusted measure, but daily necessities keep going UP!

Inflation is largely due to JPY depreciation. If it stops (this remains to be confirmed) inflation will probably stop. Wages increase are too limited (mainly large corporate) and consumption too weak to have sustained inflation. Actually after a 30% increase of prices of food in 2022 and 2023 prices seem to have stabilized over the past 3 months.

I hope this means we can find a Tacoma at the dealer soon.

It's natural that major corporations who already make profit highest ever by preferential treatment of government can raise wages.

But almost Japanese labours are working at smaller companies, increasing non-regular workers will be exploited with low wages as ever.

They are making peanuts compared to US automakers

Two companies increasing wages does not represent the whole country. They should have stopped money printing ten years ago, cost of living has been going up anyway..

Personally, I don’t know a worker at any auto manufacturer in Japan.

However, I do know an auto manufacturer offering graduate level entrants white collar jobs with a condition attached. The condition is that the first two years of work are in the factory making the cars.

Still, I guess that the non unionized labor won’t be getting any pay rise nor will the minimum wage slaves see their measly 1000 yen an hour (if lucky) increase.

The world's biggest automaker, which currently offers 228,000 yen per month for each new university graduate, will decide on how much to increase it by later.

Such a low wage would be against the law in my State. Do better, Japan.