Japanese Firms Boosting Pay for Young Workers Is Good News for BOJ
- Big firms have already announced starting salary pay gains
- May translate to smaller firms, overall wages and push BOJ
If wage gain momentum carries over into this year, the BOJ is expected to end the world’s last negative interest rate regime by April.
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Japanese firms are increasingly boosting starting pay for young employees, potentially building longer-term momentum for overall wage growth in a welcome development for the Bank of Japan as it seeks evidence of a virtuous wage-price cycle.
Companies including Dai-Ichi Life Holdings Inc. and Nomura Holdings Inc. have announced plans to raise wages for younger staff by 16%. Some firms are going even further, with Tokyo Electron boosting starting salaries by 40% and Asics pledging to raise pay for incoming college grads by 24%. The figures are all well above average salary gains and inflation in Japan.