Kishida Asks Major Employers for Pay Hikes Exceeding Inflation

Tokyo, Jan. 5 (Jiji Press)--Joining a New Year's party held by Japan's three major business groups in Tokyo on Thursday, Prime Minister Fumio Kishida called for pay hikes outpacing inflation.

"Pay hikes in accordance with people's ability are directly linked to the competitiveness of a company," Kishida said at the gathering of the Japan Business Federation, or Keidanren, the Japan Association of Corporate Executives, or Keizai Doyukai, and the Japan Chamber of Commerce and Industry.

Also pointing out that wage increases are "the core of the virtuous circle of growth and distribution," the prime minister urged participants, who are the leaders of major companies, to realize "pay hikes exceeding the inflation rate."

He further underscored the importance of raising wages, saying, "The future of the (Japanese) economy will be totally different depending on how pay hikes will be implemented this year."

Kishida referred to "pay hikes" 11 times in his 10-minute address, indicating his strong desire to see wages go up.

[Copyright The Jiji Press, Ltd.]