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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
Japan Today
03-07-2025
- Business
- Japan Today
Japan's average pay up over 5% for 2nd year
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
The Mainichi
03-07-2025
- Business
- The Mainichi
Japan's average pay ups over 5% for 2nd year in row amid price hikes
TOKYO (Kyodo) -- 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.
Japan Times
06-06-2025
- Business
- Japan Times
Japan's early May exports drop as tariff woes upend commerce
Japan's exports fell in the first 20 days of May as U.S. President Donald Trump's administration's sweeping tariffs continued to disrupt trade. Exports measured by value dropped 3% from the same period a year earlier, the Finance Ministry reported Friday. That compared with a 2.3% gain in the first 20 days of April, and a 2.0% rise for all of that month. Growth in exports has averaged 6.2% over the year through April. Japan's trade balance for the period was in the red, with a deficit of ¥1.1 trillion ($7.7 billion). The 20-day data don't provide details such as a breakdown of exports to specific countries or regions. The figures for the full month of May are set to be released on June 18. "The impact of tariffs is gradually becoming clear. I believe that a significant decline in automobile exports will occur down the road,' said Shinichiro Kobayashi, chief economist at Mitsubishi UFJ Research and Consulting. "Currently, car sales in the United States are still strong, so there is some demand for exports, but as sales decline, exports to replenish inventories will naturally decline further.' Autos, steel and chips, as well as other electronic components led exports lower while coal, nonferrous metal and crude oil drove down imports, according to the Finance Ministry. The yen averaged ¥143.02 against the dollar during the period in May, 8% stronger than the same period a year earlier, which weighed on the readings for yen-denominated exports and imports, according to the ministry. The trajectory for trade will be a key factor determining whether Japan's economy enters a technical recession in the current quarter after weak external demand and sluggish private consumption resulted in a contraction in the previous period. In April, exports to the U.S. fell, led by a drop in autos. As with other nations, Japan faces a 25% tariff on cars and their parts and a minimum 10% levy on other goods across the board. Trump doubled a levy on steel and aluminum to 50% in early June, and the 10% tariff is set to revert to 24% in early July, barring a deal. There are early indications that the tariffs are narrowing the U.S. trade gap, in line with one of Trump's goals. The U.S. gap in goods and services trade shrank 55.5% in April from the prior month, as imports fell by a record 16.3%, Commerce Department data showed Thursday. On May 12, the U.S. and China, Japan's two biggest trading partners, announced that they had reached a temporary agreement on reducing tariffs. But tensions have flared since then, with Trump complaining earlier this week that Chinese leader Xi Jinping is "hard to make a deal with.' Japan and the U.S. are continuing to negotiate on the tariffs as they eye possibly announcing a deal on the sidelines of the Group of Seven leaders' gathering in Canada later this month. Japan's top trade negotiator, Ryosei Akazawa, said upon arrival in Washington Thursday that he would continue to press for a removal of all tariffs.
Yomiuri Shimbun
09-05-2025
- Automotive
- Yomiuri Shimbun
Auto Industry Downturn Could Shake Japan's Economy;Blow to Exports Could Undermine Wage Hikes
Yomiuri Shimbun file photo The Toyota logo is seen in Chiyoda Ward, Tokyo, in March 2024. Given that the automotive industry serves as the 'backbone' of the Japanese economy, a decline in its performance could undermine the drive for higher wages in the country. With its extensive reach encompassing global corporations such as Toyota Motor Corp. and numerous small- and mid-sized parts suppliers, the industry supports 5.58 million jobs. Japan's annual automobile exports are worth about ¥20 trillion, accounting for 20% of the country's overall exports. Of the exported units, 30% are destined for the United States, making it a significant market. Amid this situation, the United States imposed an additional 25% tariff on automobiles on April 3 and on auto parts on May 3. Recent figures reflect emerging macroeconomic challenges. As a result, the Bank of Japan significantly lowered its fiscal 2025 projection for econmic growth from 1.1% to 0.5%. According to estimates by Daiwa Institute of Research Ltd., the implementation of 'uniform reciprocal tariffs' of 10% by the United States is expected to lower Japan's growth rate by 0.3%. Sector-specific tariffs on automobiles and steel, among others, would lead to an additional 0.45% decrease. The impact from tariffs on automobiles alone accounts for 0.36 percentage points, or 80%, of this decrease due to that industry's high dependence on exports to the United States. 'Automobile tariffs will have the most substantial negative impact on the Japanese economy,' said Shinichiro Kobayashi of Mitsubishi UFJ Research and Consulting Co. 'The substantial involvement of small- and medium-sized enterprises in parts manufacturing could result in considerable damage to the real economy, underscoring the urgent need to protect this sector,' he said. Major automakers, led by Toyota, have enjoyed strong performance due to the weak yen and have led the trend of significant wage increases in recent spring labor negotiations. However, should they lose momentum due to adverse conditions such as tariffs and a stronger yen, the nationwide drive for higher wages could diminish, potentially resulting in reduced personal spending. 'The wage increases that have become established are in danger of being rolled back,' said Japan Chamber of Commerce and Industry Chairman Ken Kobayashi. The United States has said it will not include automobile tariffs in the agenda for trade negotiations with Japan, raising expectations for challenging discussions. Economic revitalization minister Ryosei Akazawa expressed growing concern, saying: '[Major automobile manufacturers] are incurring hourly losses. We seek to conclude this matter with utmost haste.'
