Japanese businesses offering widespread pay raises to workers in latest effort to combat inflationary pressures and labor shortages
In Japan, high consumer inflation and labor shortages have been negatively impacting businesses. The annual "shunto" labor talks are currently in session, and representatives from both labor and management sides have been encouraging businesses to offer pay raises to workers in an effort to offset consumer inflation. Nearly a quarter of Japanese businesses have either already given out these "inflation allowances," or plan on doing so, and it is hoped that this will help drive increased productivity in the private sector.
See "Japanese businesses offering widespread pay raises to workers in latest effort to combat inflationary pressures and labor shortages", Tetsushi Kajimoto, Reuters, January 31, 2023