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2025-08-01 09:00:26
[Japan's job market remains relatively tight in June and companies are still under pressure to raise wages] Japan's job market remains relatively tight, and policymakers are seeking to boost economic growth by stimulating demand, which puts pressure on companies to raise wages. Data released by the Japanese government on Friday showed that the unemployment rate was 2.5% in June, the same as the previous month. At the same time, the ratio of job vacancies to job seekers fell slightly from 1.24 to 1.22, meaning that there were 122 job vacancies for every 100 job seekers. Economists had expected the ratio to be 1.25. Earlier this year, persistent labor shortages forced large Japanese companies to promise wage increases of more than 5% in annual negotiations with unions, the largest wage increase in more than three decades. The Bank of Japan is still observing whether these wage increases can drive a sustained recovery in personal consumption. Household spending, adjusted for inflation, grew 4.7% year-on-year in May, the largest increase in nearly three years. However, whether the growth momentum can be sustained will depend on whether wage growth can outpace inflation. June wage data will be released next Wednesday, and based on past records, most of the recent wage increases will likely be reflected in June wages.
