Major Japan firms set record with pay hikes above 5% for second year
The hike rate hit 5% for the second straight year and was the second biggest, after last year's 5.58%, since comparable data became available in 1976. The data marks the first time since 1990-91 that the rate of increase has reached 5% for two consecutive years.
The tally, released Wednesday, covered 139 companies in 19 sectors.
"Strong momentum for wage hikes continued and took root," a Keidanren official said. "Discussions were made between employee and employer sides to secure human resources amid high prices."
Manufacturing firms agreed to increase wages by 5.42% on average. Pay increases agreed by nonmanufacturing companies averaged 5.34%.
By industry, the information and communication sector, where competition to secure human resources is growing more severe, agreed to raise wages by 8.24%, after the previous year's hike of 10.15%.
The metal and nonferrous metal industry agreed to raise wages by 6.15%, followed by 6.14% pay increases offered by the machinery metal industry. The salary hike rate in the shipbuilding industry was 6.13%. The pay increases offered by the food, textiles and electronics industries surpassed those of the previous year.
Next year, the trend for pay hikes in Japan may be disrupted by the impact of high U.S. tariffs. Keidanren indicated its wish to call on member companies to ensure that regular wage hikes and pay scale increases are achieved every year.
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