Central Banks

Ueda Expects Tight Labor Market to Keep Upward Pressure on Wages

Kazuo Ueda, second left, walks with Fed Chair Jerome Powell, from left, ECB President Christine Lagarde, and Bank of England Governor Andrew Bailey outside the Fed’s Jackson Hole Economic Policy Symposium on Aug. 22.Photographer: David Paul Morris/Bloomberg

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By Toru Fujioka and Amara Omeokwe

August 23, 2025 at 5:59 PM UTC

Updated on

August 24, 2025 at 12:41 AM UTC

Bank of Japan Governor Kazuo Ueda said he expects a tight labor market to keep upward pressure on wages, reflecting his view that stable inflation is set to take hold.

“Wage growth is spreading from large enterprises to small and medium enterprises,” Ueda said Saturday in remarks at the Federal Reserve’s annual symposium in Jackson Hole, Wyoming. “Barring a major negative demand shock, the labor market is expected to remain tight and continue to exert upward pressure on wages.”