Japan's Minimum Wage Breaks 1,000 Yen Barrier

Sep 30, 2025 | News On Japan

TOKYO - From October, Japan’s minimum wage will rise across the country to exceed 1,000 yen for the first time, a development welcomed by workers but one that is expected to squeeze retailers such as discount supermarkets where higher personnel costs could lead to losses.

In Saitama Prefecture, a discount supermarket had a line of more than 30 people waiting before opening, with shoppers seeking bargains such as tofu priced at 42 yen, instant noodles at 117 yen, and six-packs of precooked rice for 430 yen. Customers described the prices as the lowest in the area.

The store maintains its low prices by streamlining operations, including stacking items so that when products run out they can simply be flipped to appear restocked, placing drinks on shelves still in cardboard boxes, and selling cup noodles directly from transport carts. “By pursuing efficiency, we have cut our workforce in half and reduced labor costs,” said Seiya Higashimoto, manager of Mammy Plus in Musashi-Urawa.

In Saitama, the hourly minimum wage will rise from 1078 yen to 1141 yen, while the nationwide average increase is 66 yen, the sharpest since the current system began. For the first time, all prefectures will set the hourly rate above 1000 yen.

The driving forces behind the rise include prolonged inflation and unusual political intervention. Yamanashi Governor Kotaro Nagasaki warned that disparities with neighboring prefectures could accelerate population outflows, spurring a “wage hike competition” among regions as governors themselves pressed for increases.

While the increase brings higher income for workers, analysts caution that rapid wage hikes could drive some retailers, particularly supermarkets reliant on part-time staff, into deficit. “Simply put, companies unable to raise their ability to pay wages will be forced out,” said Takahiro Kazehaya, senior analyst at UBS Securities, stressing the need to improve efficiency rather than depend on low-cost labor.

The government aims to raise the minimum wage to 1500 yen within five years, but whether that goal can be met depends on businesses finding more productive ways of working.

Source: TBS

Typhoon No. 15 Expected to Make Landfall in Eastern Japan on August 11

Typhoon No. 15 (Chan-hom) is increasingly likely to make landfall between Fukushima and Ibaraki prefectures on the Pacific coast of eastern Japan from the evening through the night of August 11, after moving northwest over waters east of Japan at about 15 kilometers per hour as of 9 a.m. on August 10.

Raccoon Damage Surges Across Japan

Raccoons are increasingly invading homes across Japan, damaging roofs and wiring, contaminating buildings with large amounts of urine and feces, and raising concerns over agriculture, native wildlife and the spread of disease as their population continues to expand.

Nagasaki Marks 81st Anniversary With Call to Uphold Non-Nuclear Principles

Nagasaki marked the 81st anniversary of the U.S. atomic bombing on August 9 with a memorial ceremony near the hypocenter, where Mayor Shiro Suzuki declared nuclear weapons an "absolute evil" and called on the Japanese government to uphold its Three Non-Nuclear Principles.

Flights Still Disrupted After Typhoon No. 13 Hits Okinawa

Transport services were gradually returning to normal on August 9 after Typhoon No. 13 caused widespread cancellations and shutdowns across Okinawa, although air travel remained disrupted as airlines worked to restore schedules and accommodate passengers stranded during the opening days of Japan's busy Obon holiday period.

Typhoon No. 13 Moves West but Severe Weather Lingers in Okinawa

Typhoon No. 13 was moving slowly west on the night of August 8 and was expected to approach the Chinese mainland by the night of August 9, but Okinawa, Amami and parts of southern Kyushu remained at risk from strong winds, intermittent heavy rain and dangerous seas even as the storm's center moved farther away.

MEDIA CHANNELS

MORE Business NEWS

Nikkei Rises as AI Buying Returns and BOJ Rate-Hike Bets Build

Tokyo stocks rose on August 10, with the Nikkei 225 closing at 66,376.25, up 1.2%, as investors bought electronics, metals and artificial intelligence-related shares, while fresh signs of a more hawkish Bank of Japan debate kept attention on the yen, bond yields and the timing of the next rate increase.

Japan Posts 92.3 Billion Yen Current Account Deficit in June

Japan recorded a current account deficit of 92.3 billion yen in June, its first shortfall in 17 months, as a sharp increase in import costs outpaced growth in exports.

BOJ Debate Shifts Toward Quicker Rate Hikes

Several Bank of Japan policymakers have signaled support for accelerating interest rate increases, with one member warning that the pace of hikes could become faster than financial markets currently expect as the central bank pays greater attention to upside inflation risks.

Yen Unlikely to Repeat 2024 Summer Surge as U.S. Rates Stay High

A repeat of the sharp yen appreciation seen in the summer of 2024 is unlikely under current conditions, with persistently high U.S. interest rates and continued structural pressure on Japan's currency making another rapid surge difficult, according to UBS wealth management chief investment officer Daiju Aoki.

Japanese Companies Report Strong Profits as AI, Energy and Consumer Demand Drive Earnings

Japanese companies delivered a wave of strong earnings on August 7, with Fujikura, Recruit Holdings, INPEX and several other major groups raising forecasts as artificial intelligence investment, higher resource prices and resilient consumer demand lifted profits.

Nikkei Slips as Chip Selling Offsets Broader Market Strength

Tokyo stocks ended slightly lower on August 7, with the Nikkei 225 closing at 65,606.71, down 76.55 points, or 0.12%, as selling in chip-related and artificial intelligence-linked shares outweighed solid buying in the broader market and a late recovery led by Fujikura.

Nippon Steel Targets High-Performance Steel

Nippon Steel has completed a new production line at its Nagoya Works after investing about 300 billion yen, as Japan's largest steelmaker seeks to expand production of high-performance steel products primarily for automakers.

Hokkaido Minimum Wage Sets New High

Hokkaido's minimum wage is expected to rise by 56 yen to a record 1,131 yen per hour in October, entering the 1,100-yen range for the first time, but workers and business owners are concerned that tax and social insurance thresholds could lead employees to limit their hours.

< 2 3 4 5 >