Japan’s government is considering pressuring companies to raise wages again next year as the economy stalls due to weak consumer spending, several government sources said.
Prime Minister Shinzo Abe’s government has nudged major companies into raising wages for the past two years in the spring with a series of meetings with major business lobbies and labor unions.
Voices are now growing within the government to use the same tactic for next year’s wage negotiations, the sources said, after data this week showed the economy shrank in the second quarter as exports slumped and consumers cut back spending.
Abe took office in late 2012 with a pledge to vanquish decades of deflation and economic malaise with structural reforms and monetary easing, but consumers have been cautious and inflation has ground to a halt.
The Emergency Election Sale is now live! Get 30% to 60% off our most popular products today!