Key Facts
• At the start of 2026, leaders of Japan’s three major economic groups issued statements on wage increases.
• Keidanren Chairman Yoshinobu Tsutsui expects inflation to ease in 2026.
• Tsutsui emphasizes establishing strong momentum for wage hikes and expanding investment in human capital.
• Japan Chamber of Commerce and Industry Chairman Ken Kobayashi notes wage increases are becoming regular.
• Kobayashi highlights improved wage-raising willingness among small and medium enterprises (SMEs).
• The 2025 average wage increase rate for SMEs was 4.65%, per the Rengo federation’s final tally.
• Kobayashi urges government policies to correct yen depreciation affecting raw material costs.
• Newly appointed Japan Association of Corporate Executives Representative Director Akio Yamaguchi stresses continued wage hikes to counter inflation.
• Yamaguchi calls for productivity improvements via digital transformation (DX) investments.
• Companies lacking strength must pursue mergers and alliances to remain competitive.
Summary
At the start of 2026, top leaders of Japan’s three key economic organizations expressed strong commitment to solidifying wage increases that outpace inflation. Keidanren Chairman Yoshinobu Tsutsui anticipates inflation will stabilize, enabling real wages to rise steadily if spring labor negotiations maintain momentum. He stresses the unprecedented importance of shifting corporate mindsets toward greater investment in personnel. Ken Kobayashi, head of the Japan Chamber of Commerce and Industry, observes growing wage-raising intent among SMEs, encouraged by eased labor shortages and tariff concerns, aiming to sustain the 4.65% average wage increase seen in 2025. Kobayashi also calls on the government to address yen depreciation to improve the wage environment. Akio Yamaguchi, newly appointed leader of the Japan Association of Corporate Executives, highlights the necessity of ongoing wage hikes to combat inflation and urges companies to boost productivity through digital transformation. He warns that weaker firms must consolidate to survive in competitive markets. This unified stance underscores a strategic focus on wage growth as a pillar of Japan’s economic resilience in 2026.
