Is The Permafrost Finally Thawing In Japan?
Japan famously suffers from a number of economic maladies, some of which are generally seen as endemic and intractable.
Almost all macro observers are familiar, many intimately so, and traders whose careers date back at least a decade or two are likewise well-versed.
As such, Japan's economic quagmire is a subject about which interested parties often have strong opinions that are reasonably well-informed. That's a welcome intellectual reprieve in a world where, almost as a rule, the stronger t
Uniqulo (a better version of the Gap) has about 2,300 stores globally, of which about 35% are located in Japan. So a “meaningful” wage signal for Japan.
The demographics continue to be a huge problem for Japan with a birth rate of only 7 per 1000 people. Immigration is not making up for the low birth rate, either, at only .5 people per 1000 Japanese people.
Hopefully it nudges other firms to follow suit during the annual wage negotiations. But it would be just as helpful if employers moved away from using temporary contracts for such a large percentage of their workforces. That’s similar to the bifurcated system in Spain and the goal of many US and UK firms which seek to outsource as many of their “non-critical” employment needs to outside vendors.
But it is a good first step.
I actually bought some Yen a couple of years ago. Wage growth may actually make that investment pay off!