Major Japanese Firms Agree to 5.58% Pay Hike, Highest in 33 Years

May 20, 2024, 08:44 AM

Major Japanese firms have agreed to an average pay hike of 5.58% in the spring 'shunto,' marking the highest level in 33 years. This wage increase comes amid a labor shortage, particularly in rural prefectures where wages are rising faster than in urban centers. According to a Bank of Japan survey, many companies reported that they can no longer hire enough workers if they curb wages and are starting to pass on rising labor costs to sales prices.