Japan's minimum wage of 780 yen (6.30 u.s. dollars) per hour, just enough to buy a bowl of ramen noodles. 2.1% rise last year is not in accordance with the inflation rate, and the increase of 2.3% this year might just be giving extra eggs or meat pieces in a bowl of ramen noodles their lunch.
This becomes a problem for countries that require consumers increase shopping in order to support the economy. A greater increase than usual will not be enough help to workers with low pay. With the tight labor market, it may be helpful in general wage increases as desired by the Government. In accordance with the median wage, Japan minimum wage lower than some other countries, including the u.s. and Germany.
This gives greater increase opportunities this year, which will then push the value of consumption and will probably help increase the value paid, on average, according to IMF Economist Ganelli, Giovanni in Tokio.
The final decision will be taken by 47 officials from throughout the province of Japan. They will measure the condition of the local economy before setting the minimum value that could be lower or higher than the 2.3% increase to 836 yen as NHK's recommendations in his report to the Central Government.
According to data of the Ministry of labour, Japan at least 3.2 million from 66 million workers of Japan does not get better than last year. For workers who tried to meet the entire requirement, with the increase proposed means there is an additional 30,000 yen per year, which is probably sufficient food material cost two weeks for the average household.
"Some industries are experiencing a labor shortage, so with the increase in the minimum wage will probably increase rather than decrease labor for Japan," said Hisashi Yamada, Economist at the Japan Research Institute Tokio. https://www.mql5.com/en/signals/120434#!tab=history
