Wage Hikes at Japan’s Small Firms Closely Watched for BOJ Clues

Small firms’ wage decisions could sway monetary policy
Years of deflation make it hard for businesses to raise prices

WATCH: Bloomberg’s Kathleen Hays reports how small and medium-sized companies in Japan are planning on their wage increases this year.Source: Bloomberg

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By Yoshiaki Nohara and Erica Yokoyama

March 7, 2023 at 10:00 PM UTC

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Annual pay increases at precision parts maker Fujiseiki Co. have been unremarkable in recent years, eliciting little interest beyond the employees who live atop its Tokyo factory.

But wage growth at such small Japanese companies is in the spotlight this year as the Bank of Japan looks for bigger wage gains that can sustain the price growth it seeks.