Japan's Major Companies Expected to Continue Large Wage Hikes in 2024 to Attract Talent and Counter Inflation
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Japan's major companies are expected to follow up this year's large wage hikes with another round in 2024 to attract talent and offset inflation.
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Sustained wage growth would help households cope with rising costs and provide conditions for the Bank of Japan to rollback stimulus.
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Labor shortages and persistent inflation are expected to lead to wage negotiations resulting in similar or higher raises next year.
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Prime Minister Kishida is urging companies to beat this year's wage growth in 2024 to avoid economic stagnation.
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Wage hikes remain uneven, with many smaller firms limited in what they can offer, so spreading raises across all companies poses a challenge.