Japan will spend 1 trillion yen in the next five years for reskilling workers, while encouraging firms to make pay scales more flexible. Read more at straitstimes.com.
TOKYO - Japanese Prime Minister Fumio Kishida called on Thursday for business leaders to accelerate wage rises, warning that the economy risked falling into stagflation if pay rises lagged price increases.
Stagflation is a combination of a low economic growth and surging inflation, depriving households of purchasing power and making it difficult to make ends meet.Mr Kishida’s government has emphasised the need for facilitating labour turnover by making it easier for Japanese employees, who are still accustomed to lifetime employment, to change jobs.
Japanese firms tend to prefer one-off bonus payments for rewarding performance rather than raising fixed base pay, so they can easily adjust personnel costs in good times or bad.
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