Japan consumers get mixed bag of slow wage growth, forced savings

Economy Society

Japan's wage growth has slowed to levels last seen in the aftermath of the 2008 financial crisis as companies have taken a hit from the coronavirus pandemic. Major companies have agreed on an average pay hike of 1.82 percent in this year's annual spring wage negotiations, falling below 2 percent for the time since 2013, according to data released by the Japan Business Federation. The final results are due out in July. Tepid wage growth is seen as a drag on consumption, which makes up the bulk of the economy. This time, economists are keeping an eye on the role that "forced savings," or money t...

Kyodo News

Kyodo News Society