Japan's big employers are set to follow this year's bumper pay hikes with another round in 2024, which are expected to help lift household spending and give the central bank the conditions it needs to finally roll back massive monetary stimulus.
Early indications from businesses, unions and economists suggest the labor and cost pressures that set the stage for this year's pay hikes — the largest in more than three decades — will persist heading into next year's key spring wage talks.
The head of major beverage maker Suntory Holdings, for example, plans to offer employees average monthly pay hikes of 7% in 2024 for the second straight year, to retain talent in a tight labor market and offset rising inflation.