In rural parts of Japan, small and medium-sized enterprises (SMEs) are feeling the squeeze due to ongoing wage hikes. Many of these businesses are finding it increasingly difficult to accommodate rising labor costs, threatening their financial viability. This issue has been brought to the forefront in recent times, amid talks of further wage increases and posing tough questions about the sustaining capability of SMEs.

The issue of wage hikes and labor cost adjustments is a significant one in Japan, particularly for SMEs. Many of these businesses operate on a shoestring budget, and any changes can impact their ability to stay afloat. It also intersects with broader debates about economic policies, the cost of living, and the struggles of rural economies.

In the US or EU, wage increases are also a highly contentious issue. However, their economies are more diversified, and government support for small businesses in terms of subsidies and tax breaks tend to be more robust. However, the struggle is universal across rural regions where small businesses fight to stay afloat amidst increasing global competition and urban migration.