Many regional areas of Japan saw small and mid-sized firms aggressively raise wages, reflecting intensifying labor shortages, the Bank of Japan (BOJ) said on Monday, underscoring its growing conviction that wage hikes were broadening.
In a quarterly report, the central bank also said some firms were considering raising the prices of their goods and services to guard against the prospect of rising labor costs.
"Many regions reported cases where wage increases by small and mid-sized firms were broadening at a degree unseen in recent years," the BOJ said in the report analyzing the economic situation of regional areas.