The news revolves around an apparent trend of 'Wage Hike Fatigue' being experienced by small and medium enterprises (SMEs) in Japan. With the ever-increasing pressure for wage increases coupled with economic conditions, these businesses find themselves at the edge of financial strain. The current economic climate and market expectations have led to this situation where SMEs are grappling with their finances while trying to retain employees amidst wage hikes.

In Japan, SMEs form a major part of the economic ecosystem. Wages are a critical aspect of Japan's economic policies, and the state has taken active measures to ensure equitable wage distribution. However, the current economic situation and constant pressure for wage hikes have forced SMEs into a tight spot. It's not just a matter of business but also of social responsibility, as these enterprises represent a significant portion of employment.

In comparison to the US and EU, the issue of wage increases is also significant but tackled differently. The emphasis in western economies is more on a minimum wage policy, ensuring an essential income for the workforce. While Japan also has minimum wage laws, the cultural expectation around consistent wage increases, year on year, adds additional pressure on businesses, particularly SMEs.