, Columnist
Japan Inc. Might Have to Pay Up
The labor market is so tight, higher wages are the only way to retain workers.
Yamato Transport compensated thousands for unpaid overtime.
Photographer: Tomohiro Ohsumi/BloombergThis article is for subscribers only.
Something may be stirring deep within Japan's labor market. The country's aging and shrinking population is traditionally thought of as a deflationary factor, driving down potential growth. Yet after years of resisting wage hikes, companies are starting to recognize the need to lock in staff before they literally disappear. In its most recent minutes, the Bank of Japan used an Orwellian phrase to describe the trend: "securing the labor force."