Latest news with #Rengo
NHK
04-07-2025
- Business
- NHK
Japan wage hikes widen; smaller firms miss target
Japan's biggest labor group says average wage increases were higher-than-targeted in spring negotiations, even though small and mid-size companies missed the goal for raises. Average monthly pay went up 5.25 percent based on the 5,100 firms that provided information as of July 1. That's up by 0.15 percentage points from last year, and exceeded the 5 percent target set by the Japanese Trade Union Confederation. But the labor group says companies with fewer than 300 employees raised pay an average of 4.65 percent, missing the federation's 6 percent goal. The group, also known as Rengo, says smaller firms faced sluggish demand as consumer prices rose and they were not able to pass along higher costs. Large Japan firms see record-high summer bonus Meanwhile, the Japan Business Federation, or Keidanren, says summer bonuses at major firms in Japan averaged about 990,000 yen, or roughly 6,800 dollars. That's up 4.37 percent from last year in yen terms, marking an increase for the fourth straight year. The figure was the highest since the federation started the survey under the current method in 1981.
New Straits Times
04-07-2025
- Business
- New Straits Times
Japan's household spending rises at quickest pace in 3 years as tariff risks loom
TOKYO: Japanese household spending surged at the fastest pace in nearly three years in May, offering some hopes that tepid consumption might be turning a corner even as risks from US tariffs remain a drag on confidence and economic growth. Analysts say consumers will be wary of the outlook at a time US President Donald Trump's global trade war is raising uncertainty for businesses and policymakers worldwide. Consumer spending in the world's fourth-largest economy in May rose 4.7 per cent from a year earlier, internal affairs ministry data showed on Friday, better than the median market forecast for a 1.2 per cent gain and rising at the fastest pace since the 5.1 per cent increase in August 2022. On a seasonally adjusted, month-on-month basis, spending increased 4.6 per cent, versus an estimated 0.4 per cent uptick and rising at the quickest pace since March 2021 when it surged 6.7 per cent. An internal affairs ministry official attributed the better-than-expected results to higher spending on one-off factors such as automotive-related products and others like eating out. "The three-month moving average in household spending has been positive since December last year and consumption appears to be recovering," the official said. Consumption and wage trends are among key factors the Bank of Japan is watching to gauge economic strength and decide how soon to raise interest rates. Hefty pay hikes have been seen as essential to counter inflation-induced sharp increases in the cost of living. Japanese companies agreed to raise wages by 5.25 per cent this year, marking the biggest pay hike in 34 years, the country's largest labour union group Rengo said on Thursday. "With the yen's appreciation and the downward trend in crude oil prices, it is anticipated that real wages will turn positive year-on-year in the second half of the year as inflation slows," which would lead to a gradual recovery in consumption, said Yutaro Suzuki, an economist at Daiwa Securities. However, Japanese policymakers and analysts are concerned that global trade tensions triggered by Trump's tariff policies may dent the pay-hike momentum and complicate BOJ's efforts to normalise monetary policy. The internal affairs ministry also said consumers remained wary of loosening their purse strings on items with higher prices, with spending on rice dropping by 8.2 per cent in May from a year ago since they cut back on purchasing it. On the trade front, significant uncertainty remained. Trump on Tuesday cast doubt on a possible deal with Japan, indicating that he could impose a tariff of 30 per cent or 35 per cent on Japanese imports — well above the 24 per cent rate he announced on April 2 and then paused until July 9. "If corporate earnings are significantly squeezed (due to the US tariffs), this could have a negative impact on winter bonuses and spring labour negotiations in 2026, which could lead to a slowdown in wage increases," said Masato Koike, senior economist at Sompo Institute Plus.
Reuters
04-07-2025
- Business
- Reuters
Japan May household spending rises faster than expected
TOKYO, July 4 (Reuters) - Japanese household spending in May rose 4.7% from a year earlier, internal affairs ministry data showed on Friday, better than the median market forecast for a 1.2% rise. On a seasonally adjusted, month-on-month basis, spending increased 4.6%, versus an estimated 0.4% uptick. Consumption and wage trends are among key factors the Bank of Japan is watching to gauge economic strength and decide how soon to raise interest rates. Hefty pay hikes have been seen as essential to counter inflation-induced sharp increases in the cost of living. Japanese companies agreed to raise wages by 5.25% this year, marking the biggest pay hike in 34 years, the country's largest labour union group Rengo said on Thursday. However, Japanese policymakers and analysts are concerned global trade tensions triggered by U.S. President Donald Trump's tariff policies may dent the pay-hike momentum and complicate BOJ's efforts to normalise monetary policy.
CNA
04-07-2025
- Business
- CNA
Japan May household spending rises faster than expected
TOKYO :Japanese household spending in May rose 4.7 per cent from a year earlier, internal affairs ministry data showed on Friday, better than the median market forecast for a 1.2 per cent rise. On a seasonally adjusted, month-on-month basis, spending increased 4.6 per cent, versus an estimated 0.4 per cent uptick. Consumption and wage trends are among key factors the Bank of Japan is watching to gauge economic strength and decide how soon to raise interest rates. Hefty pay hikes have been seen as essential to counter inflation-induced sharp increases in the cost of living. Japanese companies agreed to raise wages by 5.25 per cent this year, marking the biggest pay hike in 34 years, the country's largest labour union group Rengo said on Thursday.
Japan Today
03-07-2025
- Business
- Japan Today
Japan's average pay up over 5% for 2nd year in a row
Japanese companies agreed to raise wages by an average 5.25 percent in this year's spring wage talks, the second straight year to exceed 5 percent, the country's largest labor union said Thursday, although salary growth failed to keep pace with ongoing inflation. The Japanese Trade Union Confederation, also known as Rengo, said its final tally of the results of pay negotiations from over 5,000 member unions found the average monthly wage hike stood at 16,356 yen ($110). The results came a year after wages increased by over 5 percent for the first time in 33 years. But wages among small- and medium-sized firms lagged behind their larger counterparts, rising by an average 4.65 percent, or 12,361 yen. "The scope (of companies) raising wages has expanded, but it's a shame that small to medium-sized firms have failed to reach 5 percent. We were unable to halt the growing gap," said Akira Nidaira, executive director at Rengo. The latest government data also showed real wages falling for the fourth straight month in April, as core consumer prices continued their upward trend. "The difference in profits and corporate resilience became glaringly apparent," said Shinichiro Kobayashi from Mitsubishi UFJ Research and Consulting Co., adding that smaller enterprises may struggle to recruit people because of the gap. Spring negotiation wage hikes had fallen below 3 percent since 1995, but grew to 3.58 percent in 2023. The final tally in 2024 was an average 5.10 percent as a whole, and 4.45 percent among small to medium-sized firms. Meanwhile, summer bonuses for union members in major companies hit a record average 990,848 yen, the highest since the current method of data collection was introduced in 1981, according to preliminary numbers from the Japan Business Federation. The figure rose 4.37 percent compared to the previous year, climbing for the fourth straight year. © KYODO
