More than two-thirds of Japanese firms don't plan to raise base salaries at this year's labor talks, a poll showed, with pay increases more likely to come in the form of one-time bonuses that may not kick-start household spending.
A slim majority of firms said they would raise the total amount they pay workers this year, including bonuses, as corporate earnings rebound from the worst period of the COVID-19 pandemic. A full 39% said the increases would be between 1% and 3%.
The survey goes some way to show why wages remain one of the most vexing problems for the world's No. 3 economy, where policymakers want to see a virtuous cycle of higher wages and domestic consumption.