Japan government panel members call for more aid to firms seeking to raise wages
The effects of the pandemic continue to reverberate in Japan
Private sector members of a key government panel has called for the federal government to step up aid to small firms seeking to raise wages as part of efforts to prop up spending on tourism, restaurants and other sectors impacted by the pandemic.
The resurgence of the virus in Japan hasn't helped as of late, with Tokyo even recording 1,893 cases today (highest in six months), and that is dashing hopes of any sustained economic recovery in Q3 for the time being.
Japan has constantly tried to encourage firms to raise wages, as an effort to deter deflation pressures, with this issue being a key priority for Japanese PM Suga.
Things aren't going to change overnight but the pandemic certainly doesn't help and if the situation persists, it just further dents any confidence in the BOJ on reaching its inflation goal - something which was not already believable pre-pandemic.