Japan Minimum Wage Increase: Updated August 3, 2024.

 

Japan gov't panel OKs sharpest minimum wage rise amid inflation

Article Source:  https://mainichi.jp/english/articles/20240725/p2g/00m/0na/002000c

Ideas:

Minimum wage hikes are good for workers but not so good for companies, as many of the companies are small companies with few resources and or service companies with limited or very thin profit margins. So maybe a 50 yen increase in the minimum wage might be too much for many companies.

But for workers even a 50 yen increase might not be that much as inflation can eat that up in one day, as the minimum wage needs to be higher, but like some countries the minimum wage it not that much.

Unfortunately, minimum wage workers, might not be the most talented or the most skilled in the work force in Japan, like other places in the world, but they might have families or bills to pay and the minimum wage doesn't go very far.

There has always been a debate related to the minimum wage as many companies around the world don't want to pay that much, and Japan is no exception to the situation, as again, the minimum wage worker might not be the most talented or the most skilled but they provide needed work for an economy.

Inflation will always outpace wage increases as companies are very reluctant to increase wages and they have to have an incentive to increase wages. Look how long its taken for Japanese companies to increase wages ever since the Toyota group effect in the early 2000's that said no wage increases and then all companies did the same thing.

Service companies might always be the last group to increase wages, as their profit margins are very thin and they really can't afford to give the needed wage increases, as most of the workers might be contract or part-time workers.

Real wages are more important than nominal wages as Japanese workers feel the affects of real wages against inflation, as the value of real wages can diminish with inflation increases.

The minimum wage in Japan, is much lower than other country's minimum wage, as maybe the minimum wage worker is not as valued as an worker as in other countries.

Most likely, many of the minimum wage workers, in Japan, might be women who have children, and can only work a few hours each day, and of course maybe students who can only work too a few hours a day.

Each Japanese prefecture might set it minimum wage based its overall economic activity, as of course Tokyo and Osaka might have the most economic activity and their minimum wage might be the highest in Japan, while the smaller provinces which are more rural, with less economic activity might have a lower minimum wage.

Which of course might be one of the reasons many young people in the rural provinces are leaving and moving to the more economic active areas of the country, where the wages are much higher, even for minimum wage workers.

The minimum wage situation is neve going to be solved as long as companies are reluctant to give good wages to the less talented and or less skilled in a society or economy, as it going to always be an issue.

Have a nice day and be safe!