Kishida vows to nudge firms on wage hikes amid signs of recovery
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TOKYO • As its economy picks up pace, Japan's Prime Minister Fumio Kishida said he would do everything possible to create an environment for firms to raise wages.
Measures would include drawing up rules on non-financial disclosure for firms in the year starting in April, Mr Kishida told a news conference on Tuesday to mark the end of the parliamentary session.
Raising pay is a key pillar of Mr Kishida's "new capitalism" plans to bolster the economy by better distributing the fruits of growth.
The Premier, who took office in October, must maintain public support ahead of an Upper House election due next year to keep his grip on the top job.
"Distribution by raising pay is not a cost but an investment in the future," he said. "Paying properly creates the foundation for firms to create value sustainably."
Japan's government raised its monthly view of the economy for the first time since summer last year, in a sign of confidence in the recovery even amid risks from the Omicron variant.
In its report for this month, the Cabinet Office said the economy has picked up recently as the severe conditions caused by the pandemic gradually ease.
The government raised its view on consumption, business confidence and the jobs market.
The report underscores how Japan has so far managed to avoid the fast spread of the Omicron variant seen in the United States and Britain.
In the US, the variant accounted for 73 per cent of new cases last week, while Japan had confirmed fewer than 70 Omicron cases in total as at last weekend.
The Cabinet Office said attention should be given to the new variant, but still sees the economy picking up in the short term.
Supportive government policies and progress in the country's return to a semblance of normal life should help, it said.
Japan is expected to rebound this quarter after a summer wave of Covid-19 cases triggered another state of emergency, dragging on consumption.
Since then, curbs have been lifted and Mr Kishida has unveiled a larger than expected stimulus package.
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