We expect the upcoming spring wage negotiations to result in base pay hikes of only 0.5% or so, which would be broadly in line with the increase agreed upon this year. Even with output per employee stagnant for several years, this would be insufficient to reach the Bank of Japan’s 2% inflation target anytime soon.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services