Japanese firms set for 5th year of record profits on AI boom, BOJ shift

while the average salary of a full time employee is nearly the same as Taiwan and other emerging economies. It’s greed and profits that have dominated Japan business. The rich get richer and the working poor stay poor.

A visit to family in The States or Europe is now beyond my pay grade. Record profits for who? Not us workers!

I just have to laugh at this headline! It was only a few days ago we read that if the gov't goes ahead and raises the minimum wage to , oh my god, Y1500 so many companies will have to shut down! Now we are told about record profits and huge pay raises. It just goes to show that Japan is being divided into the few lucky ones who work for the largest companies that the gov't favors, and then the rest of us who are just trying to get by!

Rising corporate profits are nice, but rising salaries exceeding inflation would be nicer.

Unfortunately, Japan has had zero or negative growth in inflation-adjusted real wages for 33 of the last 35 months.

Japan saw an average wage increase of 5.1 percent in 2024, the largest rise in more than three decades, according to the Japanese Trade Union Confederation

Again, we must remember that this “average wage increase” applies only to the 16.3% of workers who are unionized.

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https://www.nippon.com/en/japan-data/h02044/

Again, we must remember that this “average wage increase” applies only to the 16.3% of workers who are unionized.

In comparison, Robert Walters, a leading specialist recruitment consultancy in Japan, offered its non-unionized permanent staff a raise of 2.3% in 2025.

It kind of reminds me of the dot com bubble. If you wanted to make a lot of money just stick dot com on your company or just say dot com and we’ll make money. Now just write A.I and do a presentation or say A.I a bunch of time and watch share prices soar, it’s another tech bubble. Some will live and some will burst.but it’s gonna take time.

"Real wages rose 1.1 percent in June 2024 for the first inflation-adjusted gain in 27 months, but fell back into negative growth as higher summer bonuses faded." For the average reader, the key takeaway starts after the "but."

A nation of rich corporations and poor people. You can thank the "market reforms" of a few years back, which nearly everyone (except me) were cheering.

"" Japan saw an average wage increase of 5.1 percent in 2024, the largest rise in more than three decades, according to the Japanese Trade Union Confederation, but wage growth still failed to keep pace with inflation.""

Corp. Record profits but very little if not ZERO impact on the employees, until these businesses keep up with inflation the average salary will continue to be below what is needed to keep ahead.

quote: AI development worldwide.

We don't trust it, like it, want it or need it. We also don't want the AI PCs or Clippy AI in Windows 11, which is why they are not shooting off the shelves.

quote: substantial wage increases.

Yeah, course they will. 10%, 20%, perhaps 30%. You are all going to be rich. No, wait...

quote: Solid consumer spending.

I seem to recall numerous articles on here stating that people are tightening their belts. My memory must be glitching.

quote: The government expects Japan's nominal wage growth to outpace inflation.

That's the official 'nearly 2%' figure, not the much, much higher real levels of retail inflation that are hurting everyone and shrinking the chocolate bars.

quote: to put downward pressure on the dollar.

In their dreams. Nothing the BoJ does will put pressure on the dollar. That's not how it works.

quote: corporate executives should not be excessively concerned...

...because they are rich and will be fine whatever happens.

I'm sure we all sleep more peacefully knowing that the rich are getting richer at our expense.

MarkX and dbsaiya - between you, you have Japan in a nutshell. Both nicely made points

And for the 5th straight year they will be passing those profits on to their workers?

No of course not.

Since 2020 there has been a massive transfer of wealth from individuals and small businesses to large corporations.

Classic Kyodo propaganda, should not be allowed anywhere and still this ”news” is everywhere.

The title has two false news, the profits have nothing to do with AI or Bank of Japan which policy has NOT changed in 15 years.

The profits are due to inflation exceeding wake hikes. Plain and simple.

リッチToday  07:01 am JST

while the average salary of a full time employee is nearly the same as Taiwan and other emerging economies. It’s greed and profits that have dominated Japan business. The rich get richer and the working poor stay poor.

I have to agree. I think we have focused so much on Wall Street or the Stock market that we have forgotten a basic fundamental of money. If we have $1, we cannot give that very same dollar to A) the workers and B) the shareholders C) the CEO. You cannot spend it twice. And if a CEO has one eye on his share options and another on profits he must have an eye on the staff's salary., because he can cut staff or staff pay. We as consumers, complain about PRICES GOING up, and at the same time, we complain we didn't get a pay rise. Well, if the prices went up, and the staff's pay didn't rise at the rate of inflation, then that is a salary cut, but the profits went up, and that has to be fed to the shareholders. It is also US as CONSUMERS, who decide where to spend that money, and if we don't have enough salary, then that will squeeze company profits in other sectors. So, it is the consumer who drives the creation of jobs, not some entrepreneurs who think they create jobs. It is both! I also believe what we save today, will be taken away in 40 years as governments by means testing the pension. Infact the facts speak for themselves. The working person in the U.S has seen their salary increase by about 20% since the 1980s. The average CEO has seen their pay increase by 1000%. If our salary had kept inline with say CEO pay, or even HOUSE PRICES, I wonder how much would we have earned? Or I can rephrase that, how much have the CEO's, done the workers over? But i wonder, why do sharholders get to vote on CEO pay, but not on the staffs pay? and why is his 1000% seen as great? Because he pays the masters. The shareholders. But it is a fact the lower paid are worse off, than ever before. Heck! most can't even afford a roof over their head now. The stock market is not our Wallet.

Economic cycles that do profit to a few sectors. Let’s wait a few months or years, to see the opposite article, driven by a market collapse or whatever geopolitical reason

In the UK the oil, gas sector made billions of pounds profit after tax, the government said, well we're going to give you a windfall tax, and they were charged a lot more tax, this went into the treasurey, you all know where Iam going with this next, why doesn't the Japanese government place a extra tax on some of these bigger co who are constantly making huge profits? As for a dismal 2% rise on a low income is a damn insult,

It's nothing but symbol of absolutely ridiculous inequality.

"Japanese firms set for 5th years record profit", But stock price that stays highest ever level is not related to many citizen who facing poverty, labours real wages are continuously down, volunteer food-aid places are increasing to over 5 times during past few years.

Companies make record profits on the backs of low paid workers.

Japanese workers are being hung out to dry after being used and abused.

Talk of staff shortages is absolute tripe!

The reality is most Japanese companies rely on high turnover of staff due to poor conditions, low pay and no prospects.

Still, Japanese people are waking up to the fact that 1000 yen an hour is no lure for being run ragged and spat out…