Today as prices rise after decades of deflation, companies face intense political pressure to raise wages
Hideya Tokiyoshi started his career as an English teacher in Tokyo about 30 years ago. Since then, his salary has remained almost the same, so three years ago he decided to start writing books to secure additional income.
“I feel lucky as writing and selling books gives me an additional source of income. If it wasn’t for that, I would have been stuck with the same salary,” Tokiyoshi, 54, told CNN. “Thanks to that I was able to survive,” he added.
Tokiyoshi belongs to a generation of workers in Japan who have barely gotten a raise their entire working lives. Now, as prices rise after decades of deflation, companies face intense political pressure to make increases.
Japanese Prime Minister Fumio Kishida is urging businesses to help workers keep up with the higher cost of living. Last month, he called on companies to raise pay above inflation, with some already heeding the call.
As in other parts of the world, inflation in Japan has become a very serious economic problem with its rate standing at 4% according to the latest records. The figure is still low compared to America or Europe, but represents a 41-year high for Japan.
“In a country where we haven’t had nominal wage growth for over 30 years, real wages are falling quite rapidly as a result [του πληθωρισμού]Stefan Angrick, senior economist at Tokyo-based Moody’s Analytics, told CNN.
In 2021, the average annual salary in Japan was $39,711, compared to $37,866 in 1991, according to data from the Organization for Economic Co-operation and Development (OECD). This means workers received a pay rise of less than 5%, compared to a 34% increase in other G7 economies such as France and Germany over the same period.
Experts have pointed to a number of reasons for stagnant wages. A key factor is that Japan has long been experiencing deflation, i.e. falling prices. Deflation began in the mid-1990s, driven by a strong yen—which pushed down the cost of imports—and the bursting of a domestic asset bubble.
Read the News today and get the latest news.
Follow Skai.gr on Google News and be the first to know all the news.
With a wealth of experience honed over 4+ years in journalism, I bring a seasoned voice to the world of news. Currently, I work as a freelance writer and editor, always seeking new opportunities to tell compelling stories in the field of world news.
