Following the publication of the new paperback Why Aren't Wages Rising? The Pitfalls of 30 Years of the Japanese Economy, an in-depth interview with author Shuto Wakana (首藤 若菜) highlighted the relationship between wages and prices and the current state of wage increases at small and midsize companies.
While real wages have remained on a positive trend since the start of the year, prices for frequently purchased items have remained elevated, creating a gap in people's day-to-day experience. It was suggested that more people feel the gap between wages and prices amid high inflation, strengthening perceptions of inequality.
The paperback examines wage dynamics from the perspective of workers in the field. Based on reporting from factories and logistics sites at microbusinesses, it points to a gap between the reality of wage increases and people's perception of them. It states that wage increases may continue, as they have at large companies, but that smaller companies find it difficult to raise wages because of the challenge of securing funds.
Current debate over inequality has centered on the employment gap between regular and nonregular workers, but it was pointed out that higher minimum wages are also narrowing that gap in some respects. It was suggested that the disparity between large and small and midsize companies will become more pronounced going forward.
The failure of wage-increase measures by the government, business organizations and labor unions to encompass the circumstances of small and midsize companies was identified as an issue. It was also suggested that debate over wage-hike tax incentives and higher minimum wages could continue.