Stubborn Wage Gap: Struggle Between Major Corporations and SMEs Continues

The issue of pay disparity between employees of large-scale corporations and small-medium enterprises (SMEs) continues to be a prominent concern in Japan. Despite governmental efforts to balance the economic inequality, there is a persistent wage gap that heavily favors the workers in well-established corporations. This economic disparity has made it hard for SMEs to secure and retain skilled personnel, thus affecting the overall growth of the economy.

In Japan, employment at a large corporation often signifies stability and prestige, hence they are able to attract top talent by offering higher wages. Meanwhile, many SMEs struggle to offer competitive salaries due to limited resources, leading to a labor shortage. This societal preference and the resulting wage gap is a longstanding issue in Japanese society, impacting the economic distribution and causing concern among citizens and policymakers.

In contrast, in the US or EU, there is a more leveled playing field with respect to wages, and SMEs often appeal to job seekers because of various other factors, such as flexibility, opportunities for skill acquisition, and exposure to diverse job roles. Nevertheless, wage disparity remains a global issue, albeit with different causes and impacting sectors.

Information for Your Country

For someone outside Japan interested in learning more about the wage disparity issue, refer to the Japan External Trade Organization's resource on SMEs in Japan (https://www.jetro.go.jp/en/jetro/topics/181209_topics1.html), and the Japanese Ministry of Health, Labour and Welfare's report on wage structures (http://www.mhlw.go.jp/english/database/db-l/wage-structure.html).