Japan small, mid-sized firms offer 3.62% pay hike, falling below major firms

Any reason to apply small companies in Japan now? Less pay, less facilities, just skip those companies.

Government data released last Wednesday showed that Japan's real wages fell for the 25th straight month of decline, the longest since comparable data became available in 1991, as wage growth failed to keep pace with inflation.

Nominal wages, the average total monthly cash earnings per worker including base and overtime pay, grew 2.1 percent to 296,884 yen ($1,910).

But the consumer price index, used to calculate real wages, climbed 2.9 percent in the reporting month, surpassing the gain in nominal wages.

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https://mainichi.jp/english/articles/20240605/p2g/00m/0bu/006000c

While many industries have raised pay, real wages have continued to fall as price hikes for everyday goods erode the purchasing power of households.

The cash hoardings and not passing gains to workers.

Aided by the LDP no strings attached corporate welfare, which could have incentivized wage growth.

Are causes for this. New Capitalism natch.

https://jp.reuters.com/article/idUSL3N20941K/

The Japanese and those working here are getting used to feeling poorer…

The Japanese and those working here are getting used to feeling poorer…

Absolutely. I know i am

Any reason to apply small companies in Japan now? Less pay, less facilities, just skip those companies.

It's more nuanced than that. Some start ups like gaishi IT start ups can pay more. As for large Japanese companies regarded as prestigious like Toyota, Mitsubishi Trading etc, know that there is a lot of competition to get into those so a lot have no choice but to work for smaller firms.

I really wonder who is feeling wealthier in the current economic climate?

The younger generation is not bothering with marriage and have no desire to bear children.

Right?

I imagine that I am reading the situation accurately.

Higher taxes and lower wages-not a recipe for a happy life, is it?

"It's below what's offered by large corporations, but it's a good number,"

if you have to tell people “it’s a good number,” that means it’s a horrible number.

But it’s still better than zero, I guess. Take what you can get from these cheapskates.

How is any small to medium sized company going to increase wages? Where does the money come from to do this?

How is any small to medium sized company going to increase wages? 

They could downsize. How many small companies here only exist because the founder would be bored if he retired? The younger skilled workers need to be freed up so they can shift into competitive industries where wages are higher.

For the past 3 years, the salaries are getting lower and lower compared to the inflation index.

Japan is not the same country it used to be 10 or more years ago. It no longer has competitive salaries, industry, the work environment is by far the worst from all developed countries, etc.

Im getting promoted to manager and my raise is less than 3%, most people at company getting 0-0.5% or salary decreases if bad review. Which company is giving these raises? I cannot believe these numbers

Somehow not so surprising.

The reason there is very little talent in Japan now.

All this data ignores the fact that millions of Japanese workers are not "employees" by "nonregular workers".

Yes, I got a raise. 1500¥ plus / month on my gross salary. :)