Japan logged a rise in real wages in June — the first increase in 27 months. But one expert says real wages may have fallen again in July, because pay raises from spring negotiations hadn’t fully taken effect by then.
Hosei University graduate school professor Yamada Hisashi says August will be the decisive month, because that’s when the increases will be reflected in payrolls.
“Currently, corporate Japan is making profits mainly through exports due to the weak yen, so the recovery of the economy is dependent on overseas trends. But now that things overseas are becoming uncertain, it’s important to create a situation where the economy can recover steadily based on domestic factors rather than being influenced by fluctuations overseas. The government and companies should work together to achieve that.”
The professor said businesses need to create a trend of broad pay rises, and they can do that by boosting productivity and passing costs onto customers.