Business Leaders in Japan Call for Pay Raises to Tackle Inflation

Jul 14, 2025 | News On Japan

TOKYO - A recent survey by the Japan Association of Corporate Executives (Keizai Doyukai) has revealed that business leaders view wage hikes as the most effective policy response to rising prices, ahead of the July House of Councillors election. The findings reflect growing concern among corporate executives about the impact of inflation outpacing wage growth, and highlight a preference for structural solutions over short-term subsidies.

When asked to evaluate the current Ishiba Cabinet, only 1.5% of respondents said they "highly approve," but a majority—54.9%—said they "somewhat approve," indicating moderate but overall positive support among the business community.

Regarding the most important policies for the upcoming election, the top response was the presentation of a national vision outlining Japan’s long-term direction. This was followed by calls for fiscal consolidation, social security reform, and improvements in foreign and security policy.

On the drivers of inflation that have outpaced wage growth, 39.3% cited "yen depreciation and rising energy prices," while 32% pointed to "increases in raw material and logistics costs," showing that many view external and supply-side factors as the primary culprits.

As for policy responses to inflation, the most frequently chosen measure by far was "promotion of wage increases." This was followed by support for reducing the burden of social insurance premiums, lowering income and resident taxes, subsidizing public utility costs such as gasoline, electricity, and gas, and cutting the consumption tax rate.

Source: FNN

Typhoon No. 29 Brings High Waves to Japan's Pacific Coast

Very strong Typhoon No. 29 (Koguma) was moving north near the Ogasawara Islands on the evening of October 11, bringing the risk of high waves and powerful swells along Japan's Pacific coast, particularly around the Izu Islands and coastal areas of the Kanto region, despite expectations of limited direct impacts from the storm. At 9 p.m. on October 11, the typhoon had a central atmospheric pressure of 950 hectopascals and maximum sustained winds of 45 meters per second near its center, maintaining its classification as a very strong typhoon. It was moving north at approximately 15 kilometers per hour.

Record-Strong El Nino Expected to Bring Warm Winter to Japan

Japan is expected to experience a warmer-than-normal winter as the El Nino phenomenon currently affecting the Pacific Ocean has reached its strongest level on record, with the Japan Meteorological Agency announcing on October 10th that unusually high sea surface temperatures are likely to persist through the coming winter months.

Otsu Festival Parades Elaborate Floats Following UNESCO Recognition

The Otsu Festival, one of Shiga Prefecture's three major traditional festivals, was held in Otsu City on October 11th, featuring a procession of 13 elaborately decorated floats carrying traditional mechanical puppets through the streets, following the festival's addition to UNESCO's Intangible Cultural Heritage list in December last year.

Cyberattacks Spread Across Japan

A series of cyberattacks has disrupted business operations and exposed millions of customer records across Japan, with a ransomware attack on a cloud service provider affecting 495 companies and local governments nationwide, while convenience store operator Lawson has disclosed a separate breach involving more than 2.15 million personal information records.

Japan's First 360-Degree Projection Mapping Opens in Osaka

Japan's first 360-degree projection mapping show will open at the Osaka City Museum of Fine Arts on October 10, transforming the historic building into an immersive world of light, music, and seasonal imagery, with organizers hoping the attraction will also help stimulate the city's nighttime economy.

MEDIA CHANNELS

MORE Business NEWS

Japan Moves to Restore Penicillin Production and Develop Deep-Sea Rare Earths

Japan is stepping up efforts to reduce its dependence on China for essential medicines and rare earth minerals, with pharmaceutical giant Meiji Seika Pharma working to restart domestic penicillin production after more than three decades and a government-backed research project achieving a breakthrough in extracting rare earth-rich mud from the seabed near Minamitorishima Island.

Japan's Labor Shortage Pushes Small Businesses to the Brink

Corporate bankruptcies caused by labor shortages in Japan reached a record 240 cases in the first half of the current fiscal year, highlighting the growing financial strain on small businesses as Prime Minister Sanae Takaichi pledges to protect household livelihoods through economic growth while pursuing consumption tax cuts that could place additional pressure on the restaurant industry.

Nikkei Tumbles As AI Rally Reverses

Tokyo stocks fell sharply on June 26 as investors locked in profits from Japan’s record-setting AI-driven rally, with SoftBank Group and chip-related shares leading a broad retreat after reports that OpenAI may delay its initial public offering.

Japan's August Current Account Surplus Exceeds 4 Trillion Yen, Up 12%

Japan recorded a current account surplus of 4.062 trillion yen in August, an increase of 12% from a year earlier, driven primarily by a sharp rise in income from overseas investments, even as higher crude oil prices pushed the country's trade balance into deficit.

Japan's Household Spending Falls 3.1% in August, Ninth Straight Monthly Decline

Household spending in Japan fell 3.1% in August from a year earlier, marking the ninth consecutive month of decline as rising food prices continued to weigh on consumer budgets, according to the latest household expenditure survey released by the Ministry of Internal Affairs and Communications on October 9.

Nikkei Stalls Near 67,000 as Oil and Yen Risks Offset Financial Gains

Tokyo stocks ended nearly unchanged on August 12, with the Nikkei 225 at 66,988.82, as gains in energy and financial shares offset weakness in electronics and pharmaceuticals while investors weighed higher crude oil prices, a weaker yen and growing expectations for another Bank of Japan rate increase.

Cyberattacks on Japanese Companies Expose Structural Weaknesses

Japan is entering a more difficult phase in its cybersecurity challenge, as a succession of major data breaches and ransomware attacks exposes weaknesses not only in corporate IT systems but also in supplier networks, governance structures and operational resilience.

Japan Beer Giants Raided Over Suspected Price-Fixing Cartel

Japan's four largest beer makers were subjected to simultaneous compulsory searches on October 7 over suspicions they coordinated wholesale prices for beer and other alcoholic beverages, in a rare cartel investigation that could lead to criminal charges.

< 2 3 4 5 >