Japanese government panel members call for help for companies considering wage hikes
TOKYO, July 21 (Reuters) – Japan must increase aid for small businesses looking to raise wages as part of efforts to support spending on tourism, restaurants and other services affected by the COVID pandemic -19, members of the private sector of a key government panel said Wednesday.
A resurgence in infections has led the government to impose a new state of emergency in the Olympic host city of Tokyo that will last during and beyond the Games, dashing policy makers’ hopes of a strong recovery in growth this year. trimester. Read more
“The key to achieving an economic recovery is to resuscitate the consumption of services that has been lost due to the pandemic,” said a group of business leaders and academics in a proposal submitted to the highest economic council in the world. government.
Japan must ensure that the revival of tourism, events and restaurants through vaccinations lead to a sustained recovery in consumption later this year until next year, they said, calling for the need to ‘flexible’ political action.
The proposals of members of the private sector tend to highlight the priorities of the administration and serve to lay the foundations for the economic policies of the government.
Speaking at the council meeting on Wednesday, Prime Minister Yoshihide Suga said the government would extend special employment subsidies for businesses affected by the pandemic until the end of the year.
The move would be part of the government’s efforts to encourage businesses to raise wages, especially small businesses that pay minimum wage to their employees.
Suga has made raising the minimum wage in Japan one of his political priorities to overcome deflation and give households more purchasing power.
An influential government panel last week recommended that the national average minimum wage be increased by about 3% to nearly $ 8.50 an hour in the current fiscal year. Read more
Reporting by Leika Kihara
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