The outlook remains less rosy for small and medium-sized firms that provide most jobs.
Ahead of spring "shunto" labour negotiations, managers at 24% of the companies polled said they planned on across-the-board bumps in base salary along with regularly scheduled wage increases. Another 29% said they would carry out regular pay increases only, while 38% were undecided.
A total of 34% of firms said they planned wage increases of at least 3%, a jump from 10% in a Reuters survey in October. Asked what expenses would be curtailed if corporate levies go up, the top answer was capital spending, at 42%, followed by dividends and wages.
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