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Yet the small companies that provide most of Japan's jobs generally can't increase pay, business owners, economists and officials say. Battered by the pandemic, small firms now struggle to pass on higher costs out of fear of losing customers. They feel they have no choice but to put up with impossible demands from big companies." The trend is most apparent in industries with many small suppliers. The fair trade watchdog last month named 13 big companies it said refused to accept higher prices from suppliers.

Tokyo CNN —Japan is grappling with the biggest drop in living standards in nearly a decade as inflation continues to soar. Japan saw a 3.8% year-on-year fall in inflation-adjusted wages in November, data published by the Ministry of Health, Labor and Welfare showed. It’s the biggest fall since May 2014, when a consumption tax hike at the time caused a 4.1% decline, according to data published by the ministry. Companies must generate profits and then properly distribute them to workers,” Kishida said Thursday while speaking at a New Year gathering hosted by Japan’s three major business lobbies. Wages in Japan have largely hovered at the same level over the last decade, according to the latest data published by the Organisation for Economic Co-operation and Development (OECD).

☆ BOJ's Kuroda vows to continue monetary easing for now, focuses on wages
▼ + stars: | 2022-11-14 | by ( Tetsushi Kajimoto | ) www.reuters.com time to read: +3 min

Kuroda said the job market is expected to tighten, particularly at service sector firms, many of which employ low-paid part timers and contract workers. The annual labour-management wage negotiations next spring will likely take into account both the tightening of the job market and rising inflation, he added. "We are at a stage where we will continue monetary easing to firmly back economic activity at present," Kuroda told a meeting with business leaders in Nagoya in central Japan. "The wages hold the key to see whether sustainable inflation take hold. In that sense, tightening of the labour market may be an encouraging signal to Governor Kuroda," Takeda said.

☆ Analysis: Wages, not yen, key to when Japan shifts away from ultra low rates
▼ + stars: | 2022-10-26 | by ( Leika Kihara | ) www.reuters.com time to read: +5 min

"It's a once-in-a-lifetime opportunity for Japan to finally see a positive wage-inflation cycle kick off," said one of the sources. Were the BOJ to tweak YCC, the most likely first step would be either to hike the 10-year yield target, or widen the implicit 50-basis-point band set around it. LOW RATES NOT FOREVERThe BOJ rules out using rate hikes to stem yen falls, as Japanese law gives the government, not the central bank, jurisdiction over exchange-rate policy. In April, dovish board member Asahi Noguchi said wages must rise by nearly 3% for the BOJ to tweak its ultra-loose policy. Yields on super-long bonds have risen to multi-year highs despite the BOJ's aggressive bond buying, casting doubt on the effectiveness of YCC.

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