The increase in the minimum wage is due to a competition to attract talent， rising labor costs， and a decline in employment， which could lead to an increase in bankruptcies．
The prefectural minimum wage for fiscal 2024 was significantly higher than the 50 yen increase that the government set as a “guideline” for the amount of increase, particularly in Tohoku, Kyushu, and Shikoku. The background to this is the intensifying competition to attract talent, as local governments seek to avoid losing workers to urban areas and neighboring prefectures. However, for companies, a sudden wage increase could lead to an increase in labor costs and a reduction in working hours due to an awareness of the “annual income barrier,” which could lead to “bankruptcies due to labor shortages.” There are also concerns about the negative impact on the local economy. Regarding raising the minimum wage, local government leaders who want to prevent the outflow of human resources have repeatedly requested that local councils discuss the issue. Tokushima Prefecture has argued that the current minimum wage is lower than the actual economic situation and has been calling for a significant increase, but on the 29th it was settled on an unprecedented 84 yen increase. Governor Masazumi Gotoda commented, “This can also be evaluated from the perspective of improving our competitiveness with other prefectures and preventing young people from leaving the prefecture.” Iwate Prefecture, which was ranked last in the nation last year, delayed its decision until late August when results from other regions were available, and then decided to raise the rate by 59 yen, putting it out of last place. However, according to Teikoku Databank, the number of bankruptcies due to labor shortages caused by rising labor costs and difficulty in recruiting reached 182 in the first June of this year, the highest number for the same period since comparable data became available in 2013. Yagi Yusei, manager of the company’s Tokushima branch, pointed out that “if the minimum wage remains low, it will not lead to business growth,” but also believed that “it will have a major impact on the management” of small and medium-sized wholesale, retail, and service industries. There are also concerns that a rise in the minimum wage could have a negative impact on people’s “income barriers,” which limit working hours so that their annual income does not exceed a certain amount in order to avoid increased tax burdens, etc. A liquor store manager in his 40s in Morioka City said that if there are restrictions on working hours, “it will be difficult to manage (shifts) because we don’t have the leeway to hire people.” Yamada Hisashi, a visiting researcher at the Japan Research Institute, pointed out about the minimum wage, “A sudden increase could destroy local industries, so a sustainable system is desirable.” He stated that “the returns will be great” if people work above the annual income threshold, and called on the government to consider revising the system. Jiji Press, Economic Department, Published on August 30, 2024 at 7:48am.
>>1 >However, for companies, a sudden increase in wages could lead to an increase in labor costs and a reduction in working hours due to an awareness of the “annual income barrier,” which could lead to “labor shortage bankruptcies.” There are also concerns about the negative impact on the local economy. The sudden wage increase is punishment for not raising wages abnormally until now lol.
>>1 How can you punish someone by raising your hourly wage because of a weak yen? I can understand if they’re trying to make up for expenses that were kept down by the strong yen.
We need to highlight the attractions of not only companies but also regions, and the national government should fully favor and support regions, so that they don’t steal human resources from Tokyo. The real battle is yet to come.
They said that salaried workers and housewives who earn less than 50,000 yen a month have a much higher misery index than those on welfare.
Pensions are much cheaper than welfare, so you don’t pay anything from the age of 20, you spend as much as you can while you’re young, and when you’re around 40, you get PTSD or depression, so it’s said that welfare is the easiest way to make money.
PTSD and depression are really useful, so I recommend it lol.
With this method, more and more people in their 20s and 30s, especially young women, are now receiving welfare.
Why don’t you stop living as a slave to your company or partner?
For now, don’t become a company slave for low wages. If you’re a part-timer, only do work that’s worth the low hourly wage. The profits go to the executives, so don’t work too hard if you’re a part-timer. That’s just making you a slave lol.
It’s a lie that wages are rising because of the weak yen and the booming economy. Wages only rise because of the declining birthrate and labor shortage. If there were as many people as there are now during the ice age, employers would never raise wages. I can say this with certainty. Don’t be fooled.
Even if they maintain wages to avoid more bankruptcies, companies will go bankrupt anyway due to lack of staff. Those who are against it should make up their minds quickly.
A company won’t go bankrupt just because it raises wages. All we need to do is not increase expenses, so we should raise the wages of the talented people and fire the incompetent ones.
The only seven places in Japan where the minimum wage exceeds 1000 yen per hour are Tokyo, Kanagawa, Chiba, Saitama, Osaka, Hyogo, and Kyoto. Even in Tokyo, where it has the highest minimum wage, the hourly wage is a low 1113 yen. Compared to other developed countries, wages in Japan are far too low.
Is there a relationship between labor shortages and minimum wage increases? If there is a labor shortage, won’t wages rise even if the minimum wage doesn’t increase?
If you’re a useless person who only boasts about your age and physical strength, jobs in factory warehouses, security, nursing, food and beverage, and cleaning are all calling. Just submit your resume and you’ll be hired immediately.
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