Japanese fashion company Uniqlo to implement a salary increase of up to 40%. With this, the parent company, Fast Retailing Group, wants to narrow the wage gap between employees in Japan and those abroad.
The company also hopes to better cope with global competition in the apparel industry. The salary increase is a cause for joy for the Japanese government and the hope is that other companies in Japan will follow Uniqlo’s lead.
The monthly salaries of highly educated people working at Uniqlo will be increased from 255,000 yen to 300,000 yen, or about 2,100 euros. Store managers are ahead by 100,000 yen to 390,000 yen, the equivalent of more than 2,700 euros. Uniqlo’s intentions show that other employees will also benefit up to 40%.
Great shortage of staff
Due to the rapidly aging population in Japan, following few births, there is a severe shortage of personnel in many industries in Japan. According to experts, wage increases can ensure that more people enter the Japanese job market. But they add a caveat. For example, wage increases can cause struggling companies to fall behind and be forced to reorganize.
Source: BNR
Andrew Dwight is an author and economy journalist who writes for 24 News Globe. He has a deep understanding of financial markets and a passion for analyzing economic trends and news. With a talent for breaking down complex economic concepts into easily understandable terms, Andrew has become a respected voice in the field of economics journalism.
