According to Japan's Kyodo News Agency reported on the 26th, the average wages in Europe, the United States, South Korea and other countries have increased sharply in the past 30 years, while Japan has basically stood still and ranked lower in the developed countries. The main reason behind this is the long-term deflation after the collapse of the bubble economy, the weakening of corporate profitability, and the depression of wages in order to make a profit. One reason is that employees are more focused on maintaining employment than on wages.
According to the Organization for Economic Co-operation and Development, the average wage in Japan, calculated at purchasing power parity taking into account price levels, was $38,514 (about 4.39 million yen) in 2020, an increase of only 4% compared to 1990. This is in stark contrast to the gains of about 50% in the US and about 40% in the UK. Japan ranks 22nd out of 35 countries, and the salary level is less than 60% of the 7.91 million yen in the United States, which is at the top of the list. In 2015, it was also surpassed by South Korea, and the current gap is about 390,000 yen.
Japan is thought to have been deflationary since the mid-1990s. The vicious circle of businesses driving down wages in order to provide goods and services cheaply, causing people to stop spending money and consumption to stagnate, continues. The proportion of informal employment with wages below regular employees has increased from about 20% 30 years ago to nearly 40%, which has also led to a low average wage.
According to the report, Yamada Hisashi, vice chairman of the Japan Institute of General Research, pointed out: "It is important to promote the transformation of business practices from cheap and good quality to selling specialty goods at reasonable prices." Jobs and wage systems across the country need to change. (Zhongxin Jingwei APP)