The Bank of Japan’s Osaka branch said wage increases are expected to continue into next year, though businesses remain cautious about long-term commitments. Rising costs and an aging workforce have forced companies to offer higher pay, yet most are reluctant to lock in significant structural raises.
Economists argue that Japan’s modest wage momentum could still support domestic demand and help normalize inflation, but sustained growth will depend on productivity reforms and corporate confidence. For many firms, the question isn’t whether to raise wages — but whether they can afford to sustain them. AI Image Disclaimer
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Bank of Japan, Nikkei Asia, Reuters, Bloomberg
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