Even a 1% Pay Raise Would Be a Lot for Japanese Workers in 2018

  • Japan hasn’t seen total earnings move up that much in decades
  • But more is needed for people to loosen their purse strings

Pedestrians walk at dusk in Tokyo.

Photographer: Tomohiro Ohsumi/Bloomberg 

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Japanese workers will see a 1 percent increase in their total earnings next year, the most since 1997, as rising profits and the tightest labor market in decades add upward pressure on pay, a Bloomberg survey shows.

“The labor shortage is definitely getting more serious,” said Shuji Tonouchi, a senior market economist at Mitsubishi UFJ Morgan Stanley Securities Co. who was among 16 respondents to the Dec. 8-13 poll. “On top of the tight labor market, improving corporate earnings will add tailwinds.”