Japan, Bonuses, and Savings: Updated Nov. 7, 2024.

Fewer people saving winter bonuses, signaling inflation's harshness: Japan survey

Article Source: https://mainichi.jp/english/articles/20241102/p2a/00m/0bu/023000c

Ideas:
Japan traditionally has been a savings country and not so much a spending country, which is the opposite of the US. Most likely Japanese workers are going to spend their winter bonuses on their current expenses which at this time just keep increasing it seems like every month in Japan.

Of course, unfortunately, the lower-income groups probably have no choice but to use their winter bonuses, if they even get one, to cover their everyday living expenses.

The Japanese government needs to step in, without disrupting normal market fundamentals, and provide some price controls or more subsidies to help the middle class and lower-income groups. Prices controls on everyday products such as eggs, milk, rice, and bread for example.

Most likely some or many are not going to get a winter bonus as maybe companies used the normal winter bonus amount on the wage increases in April and since they used up their funds there are none left for winter bonuses. 

At the same time, maybe many companies just don't have the profit margins needed for winter bonuses as their expenses, with inflation, have just been too much.

Those in their 30's for example are in their prime age for families and maybe with children they can't really save much as they use most of their income, including the winter bonus on household expenses.

Travel is still very common in Japan even in the winter months where some or many Japanese try to go to the snowy areas for skiing and other activities.

Spending on everyday groceries seems like a logical idea for most of not all Japanese households, and why is it even on the list of activities, while eating out might be a not so common activity with inflation as high as it is but maybe some households or individuals just want to get out and spend and not stay at home every night.

Compared to the US, and not sure about the EU, but bonuses in Japan are a regular occurrence which is why salaries are lower in Japan, because many Japanese workers at large companies get bonuses two times a year which makes up for the lower salary in Japan.

Unfortunately up to 70 percent of Japanese workers don't work for large Japanese companies and most likely don't get a bonus and of course their salary or wage is much lower. If they do get a bonus most likely its much lower than that the large company workers get.

Yes, most likely, because of inflation, most Japanese households are spending their bonuses on everyday groceries, as again, inflation continues to be very high in Japan.

Most likely, this upcoming winter season, there won't be too many Japanese going on long overseas trips as the weak Japanese yen makes it hard for Japanese households to spend on trips.

Have a nice day!