Overview
- Rengo, the country’s largest union group, reports an average pay offer of 5.26% for this fiscal year, extending a three-year run above 5%.
- Member unions sought a 5.94% increase, and early readings typically ease once smaller firms report, as seen when last year’s 5.46% initial figure settled at 5.25%.
- Major employers including Toyota, Hitachi, and NEC granted full union demands, a sign of tight labor markets and competition for workers.
- BOJ Governor Kazuo Ueda says underlying inflation should accelerate at a moderate pace and that policy will target stable inflation alongside sustained wage growth.
- Economists caution that higher oil prices and conflict in the Middle East could lift costs, squeeze real wages, and leave smaller companies more guarded in talks.