Society | Dec 27

Abe urges wage increase for Japan’s workforce in effort to spur consumption before tax hike

Prime Minister Shinzo Abe on Wednesday asked business leaders to raise wages to spur consumption and mitigate the impact of next October’s planned sales tax hike, the sixth consecutive year he has requested such an increase.

“I would like to request a wage hike that will further cement the upward momentum of the economy,” Abe told business leaders at a meeting of the Japan Business Federation, the country’s most powerful business lobby, also known as Keidanren.

Abe said he would refrain from proposing a specific figure for wage hikes, but cited the average of 5 percent in 1989, around double this year’s number, as a target.

The prime minister made the request ahead of annual wage negotiations between management and labor unions that take place in the spring, with an eye on countering any slump in domestic demand predicted to come when the consumption tax is increased to 10 percent in October from the current 8 percent.

Last year, Abe urged business leaders to lift monthly salaries by 3 percent in fiscal 2018 to spur private consumption and fight chronic deflation. The decision to request a specific figure is considered rare for the country’s leader.

But many firms remained cautious about reducing their cash reserves to increase wages.


MORE Society NEWS

The Imperial Household Agency has announced that Princess Kako, the second daughter of the Akishino family, is scheduled to visit Greece in late May to promote international goodwill.

The Taiji Town Whale Museum in Wakayama Prefecture conducted a memorial service on Tuesday for marine mammals and fish that have died in captivity.

A startling projection has been unveiled, suggesting that if current trends continue, every Japanese person might eventually be named 'Sato'.

POPULAR NEWS

Four men have been arrested by Tokyo police for allegedly recruiting women for prostitution in the United States via a website, promising encounters with affluent clients and high earnings.

For the first time in 73 years, Japan has unveiled a newly constructed whaling mother ship, equipped with drone technology for whaling operations in the Antarctic Sea.

The Liberal Democratic Party (LDP) in Nara Prefecture has disciplined its former Youth Division Chief following a controversial dance party incident.

Residents of Japan's oldest student dormitory, self-managed for over 100 years, are digging in as Kyoto University attempts to evict them from the premises.

A Japan Airlines flight en route from Melbourne to Narita Airport encountered sudden severe turbulence on April 1, causing injuries to several cabin crew, including a broken leg.

FOLLOW US