Regional Challenges Await as Japan Grapples with Minimum Wage Increases

The Chairman of the Japan Business Federation (Keidanren) voices concerns about implementing nationwide minimum wage increases, observing that such changes could place significant strain on businesses in rural and regional areas.

In Japan, wage adjustments, especially concerning minimum wage, are a crucial matter discussed not only amongst the labor force but also on the national legislature's floor. It is an issue tied to their standard of living, poverty line, inflation rate, and labor market conditions. An increase in the minimum wage can drive regional wage disparity as the cost of living in urban and rural areas of Japan are drastically different.

In the US and EU, minimum wage issues generate similar debates. However, while some states in the US set their own minimum wage, the federal minimum wage remains unchanged for over a decade. In the EU, the situation varies across countries. Some like Denmark and Sweden do not have a statutorily set minimum wage, relying on collective wage agreements instead.

Information for Your Country

For further details about minimum wage policies and the current economic situation in Japan, refer to publications from the Ministry of Health, Labour, and Welfare (https://www.mhlw.go.jp/english/) and Japan Business Federation (https://www.keidanren.or.jp/en/)