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Japanese companies agreed on biggest wage hike in 33 years, union group says

Published 04/04/2024, 03:34 AM
Updated 04/04/2024, 04:20 AM
© Reuters. An office worker walks past illuminated trees at a business district in Tokyo, Japan January 23, 2024. REUTERS/Kim Kyung-Hoon

TOKYO (Reuters) -A group of Japanese firms have agreed to raise wages by 5.24% this year, the country's largest union group Rengo said on Thursday. 

The third announcement on the outcome of annual pay negotiations compared with the second survey of 5.25% and initial outcome of 5.28% last month, still the biggest rise since 1991 when it logged 5.66%.

The results of the closely watched pay talks are announced in several stages, starting with blue-chip firms in mid-March. 

The average growth of pay hikes tends to shrink from the initial round as an increasing number of smaller firms wrap up negotiations towards the April-June quarter. 

© Reuters. An office worker walks past illuminated trees at a business district in Tokyo, Japan January 23, 2024. REUTERS/Kim Kyung-Hoon

The next survey result is scheduled to be released on April 18.  

Prime Minister Fumio Kishida is counting on high wage growth to pull Japan out of more than two decades of deflation while Bank of Japan Governor Kazuo Ueda stresses sustained wage growth and inflation as crucial for a further pullback from massive monetary stimulus. 

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