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Pay in Japan is finally rising, but this won't boost growth much

Higher wages will have limited impact on overall inflation

| Japan
The problem for Japanese workers is that inflation-adjusted wages have not been looking so good. Factoring in inflation, pay actually fell 1.8% during the last fiscal year.   © Reuters

Norihiro Yamaguchi is senior economist with Oxford Economics in Tokyo. Makoto Tsuchiya is an assistant economist with the forecasting company.

For years, Japanese Prime Minister Fumio Kishida and predecessor Shinzo Abe pushed companies to give workers pay raises of at least 3% a year, under the notion that this would help restart the virtuous cycle of economic growth that had stalled amid decades of deflation.

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