Pay Hikes at Major Japan Firms Average 2.27 Pct: Keidanren

Economy

Tokyo, May 20 (Jiji Press)--Monthly wage hikes agreed so far between major Japanese companies and their unions in this year's "shunto" labor-management negotiations have averaged 7,430 yen, or 2.27 pct, the Japan Business Federation, or Keidanren, said Friday.

The average growth rate, compared with the 1.82 pct rise in the previous year's shunto, was up year on year for the first time in four years, according to the biggest Japanese business lobby's initial survey on the 2022 shunto. In the survey, 81 companies in 14 industries gave answers.

The average pay increase came to 9,748 yen, or 3.02 pct, at 26 firms whose earnings recovered to levels before the novel coronavirus pandemic.

Before the start of this year's shunto, Prime Minister Fumio Kishida expressed his hope that companies that saw their earnings rise back to pre-pandemic levels would increase wages by over 3 pct.

Following the request, Keidanren additionally released data covering companies with strong earnings this time. "As we have come out of the downtrend (in the wage growth rate) that started in 2019, we believe that we can get a pass mark," a senior Keidanren official said.

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Jiji Press