Japanese Firms Provide Salary Increases to Address Labor Issues

One of the major challenges that Japan has to deal with in recent years is the issue on chronic labor shortage as a consequence of the country’s aging population brought about by its low birth rate. In order to address these issues, the Japanese government has undertaken various measures to augment its workforce.


Photo credit to: https://www.japantimes.co.jp

As a first step, the legislative body of Japan amended its immigration rules last April 2019 by providing for less stringent requirements in acquiring visa status on the part of foreign workers particularly those who are seeking employment in the fourteen identified sectors with the worse labor related problem such as but not limited to construction, nursing, agriculture as well as food and service industries, among others.


This government policy aims to attract more than three hundred and forty thousand overseas workers over the next five years. To further address Japan’s labor crunch, the government also opened wider doors of employment opportunities for female workers.


In addition to the above mentioned courses of action conducted by the Japanese government to address its labor issues, the latest news in Japan revealed that major firms and commercial establishments in the country agreed to increase wages and salaries at an average rate of 2.43 percent or 8,200 a month during the wage negotiations this year.


With regard to the amount of salary increase, the construction industry has reportedly provided the highest increase in wage with an average of 13,484 yen. The construction sector is one of the fourteen identified industries experiencing the worst labor shortage.


According to one of the officials of Japan Business Federation, “The pay raise was at a lower rate than last year, but the upward trend is continuing.” He added that Japanese commercial establishments were able to come up with their decision by considering the individual earnings of their employees as well as Japan’s concern over worsening labor conditions.


Reference: Major Japanese firms hike wages by average 2.43% a month


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