Japan wage growth gathers steam as reluctant retailers raise pay

Wage Increases in Japan: Japanese retailers are offering significant pay raises for the second consecutive year to attract and retain staff amid a shrinking working-age population and rising inflation, which may lead to increased consumer spending and potential central bank rate hikes.

Concerns Over Sustainability: Despite the wage hikes, there are doubts about their long-term sustainability and whether they will translate into increased consumer spending, as many workers express a preference to save rather than spend any additional income.