Japan firms offer over 5% wage hike for 2nd straight year: survey
Ideas:
Its good that Japanese companies are finally increasing wages as the previous decade they didn't increase wages and or the wage increases were minimal.
But it must be remembered that the wage increases might be for the large Japanese companies and most Japanese workers don't work for large companies but small and mid-size companies which don't have the resources to match the large companies.
Yes a 17,828 yen increase is very good or $120 dollars per month but as inflation continues to increase in Japan, will the wage increase be enough for Japanese consumers to begin to spend again.
And its very good that small and midsize firms were increasing wages too, and a 5.09 percent increase is a good start, but again will it be enough to overcome the consistent inflation challenge in Japan.
Will Japanese workers just save the wage increases, will they use it to pay the normal expenses, of will they be able to finally begin to spend in the Japanese economy to get the economy moving again.
Yes, a 6 percent increase will be good, but it is highly unlikely that Japanese small and midsize firms have the resources needed or the room in their profit margins to get to 6 percent in a wage increase.
But again, at 5,09 percent that is a good start for small and mid-size firms that usually don't get anything near what the big firms get.
For the most part, there is two-tiered system in Japan of large name brand companies and then all of the small and midsize companies in the other tier, with the large companies have the best salaries, best benefits, and maybe best working conditions.
A wage increase of 14,320 yen is again a good start but will it be enough to get small and midsize Japanese consumers to begin to spend again to grow the Japanese economy, as they make up 70 percent of the workforce in Japan.
Its good that 351 companies are able to give increased wage increases, but that means over 400 small and mid-size companies might not have the resources needed to increase wages.
Japan is in the middle of a so-called labor shortage and its quite possible the companies that increased wages as thought about that they needed to increase wages to keep our current employees and or attract other employees.
At the same time, most likely those companies that didn't increase wages are concerned that might not attract new needed workers and or worried of those they have now are going to change to a new company with higher wages.
Non-regular workers in Japan and globally are always the lowest in companies and of course they always get the lowest wages or even wage increase.
But it seems maybe all things in Japan are finally going to get out of the stagnant situation Japan has been in for a very long time.
Stagnation is not just a economic situation but also a mindset as households can get into a stagnant mindset and just try to survive from day to day.
Its also the same with companies as the stagnant economy can affect how companies handle the day to day or quarter to quarter or even the year to year environment.
Maybe, for example, as wage earners in Japanese companies begin to have a different mindset and begin spend again, it might be the start a new paradigm in Japan and as one sector begins to change then other sectors begin to change and so-on then all of a sudden the Japanese economy is back to running on all cylinders instead of a half limited engine.
The Japanese economy has been running on a half-cylinder engine for decades and its time for the Japanese economy get back to running on all cylinders.
Have a nice day!
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