Japan sets 1% wage growth target to spur economy in new policy plan

Japan sets 1% wage growth target to spur economy in new policy plan

Wage increased by 1%, while price rice increase more than 100% in the last 1 year. It should be able to cope the price increase right?

Oh boy, boss gives you a dollar! (168 yen?) Better work harder!

Japan sets 1% wage growth target

Sounds good until you remember the Bank of Japan has a 2% inflation target.

So, in effect, the government target is a real salary decrease of 1% a year.

That’s rather depressing when you think about it.

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https://www.reuters.com/markets/asia/japans-largest-opposition-calls-lowering-bojs-inflation-target-2025-06-10/

Labour productivity in Japan is low, well below the OECD average. It is impossible for firms to give a real wage increase of 1% when labour productivity is only growing by 0.4%.

Productivity needs to rise before wages. The good news is that productivity is so low that there is a huge opportunity for Japan to catch up and make the country and citizens wealthy again.

Asiaman7Today  08:49 am JST

Japan sets 1% wage growth target

Sounds good until you remember the Bank of Japan has a 2% inflation target.

So, in effect, the government target is a real salary decrease of 1% a year.

That’s rather depressing when you think about it.

No they talk about real wage in the article.

“setting a target of approximately 1 percent real pay growth annually over a five-year period to encourage consumer spending and sustain economic growt”.