Japan PM Ishiba will speak this week – to highlight pay hikes

Japanese Prime Minister Shigeru Ishiba will emphasize strong wage growth surpassing inflation as a key element of his economic revival strategy in an upcoming policy speech to parliament, according to government sources.

Ishiba plans to challenge Japan’s historically low wage growth expectations and encourage businesses to continue the pay raise momentum seen last year. His speech, scheduled for Friday’s opening of the 150-day Diet session, will also highlight efforts to decentralize the economy and unlock regional potential.

Since taking office in October, Ishiba has made regional revitalization a priority ahead of this summer’s House of Councillors election. In parliament, he will seek bipartisan cooperation, as his Liberal Democratic Party (LDP) and Komeito coalition lack a majority in the House of Representatives, making opposition support crucial for passing legislation.

Despite record wage increases last year, rising prices continue to strain household budgets. To address this, Ishiba will commit to efforts to raise the national minimum wage to 1,500 yen ($10) per hour by the end of this decade, up from the current level of just over 1,000 yen.

This article was written by Eamonn Sheridan at www.forexlive.com.