BOJ survey shows wage growth spreading among small, medium Japanese firms (updated)

Rengo

12/07/2024 07:48

(Adds details from the survey, background)
       TOKYO, July 12 (Reuters) - Momentum to raise wages has
been spreading among small and medium firms in Japan this year,
reflecting labour shortages and efforts to help employees tackle
an inflationary squeeze, a central bank survey showed on Friday.
    According to the Bank of Japan's survey on regional small
and medium firms, labour shortages are now perceived as being
here to stay, and the need for continued wage hikes is being
recognised widely.
    While many firms still find it difficult to pass rising
labour costs to prices, there is a growing movement to implement
or consider such price hikes, especially in industries where
labour shortages are severe, the survey said.
    Such momentum among small and medium firms, where wage
growth typically lags behind that of big companies, could set
the stage for another interest rate hike by the central bank.
    According to the nation's largest union Rengo, workers'
monthly pay will rise 5.10% on average this fiscal year, the
biggest wage hikes in three decades.
    Rengo, which has about 7 million members, said big firms
with 300 or more union-backed employees raised wages by 5.19%,
while small firms increased pay by a smaller 4.45%.

 (Reporting by Makiko Yamazaki; Editing by Kim Coghill and Miral
Fahmy)
 ((Makiko.Yamazaki@thomsonreuters.com; +81-3-4563-2805;))