Japan minimum wage increase fails to offset rising cost of living

Japan has implemented a 5% increase in the minimum wage for the second consecutive year, bringing the rate to 1,177 yen per hour (approximately 6.50 euros). Despite this rise, workers report that the increase is insufficient to cover the rising cost of living.

Approximately 40% of Japanese workers hold precarious jobs, many of whom rely on the minimum wage. Reports indicate that the current rate is significantly lower than the minimum wages in France and the United Kingdom, which exceed 12 euros per hour. The economic strain is evidenced by individuals reducing meal frequency and being unable to afford independent housing.

Small business owners have also expressed concerns, noting that wage increases combined with inflation create cash flow difficulties and reduced consumer spending.