Share of Japan Firms Raising Wages Drops in 2020

Economy

Tokyo, Nov. 25 (Jiji Press)--The proportion of Japanese companies raising wages marked its first decline in nine years in 2020, as the coronavirus crisis hit the hotel and restaurant industry hard, a labor ministry survey showed Wednesday.

The share of companies that raised or plan to raise wages this year fell 8.7 percentage points from the previous year to 81.5 pct, the lowest since 2013, the ministry said.

The pace of decline was the steepest since a 12.3-point plunge in 2009, in the aftermath of the global financial crisis, the survey showed.

A ministry official said the impact of the coronavirus epidemic is expected to be more evident from now.

“Companies can’t change wages quickly as their decisions are based on earnings in the previous year in general,” the official said.

[Copyright The Jiji Press, Ltd.]

Jiji Press