Japan Faces Further Economic Difficulty As Wages Decline

For over two decades Japan has tried everything they can to grow their economy.

Once in a while something works for a bit, but just as quickly the stagnation continues.

Japan has had 0% interest rates for a long time, and even that has not boosted their economy.

Their falling population doesn’t help matters either.

Now, a new study shows wages are dropping, dashing hopes that domestic spending would provide the boost the economy needs.

According to the Japanese Labor Ministry, year-over-year wages were down 0.4% in Japan – when last measured in December of 2016.

To correct the problem, Japan’s Prime Minister Shinzo Abe is planning to meet with businesses and labor groups to encourage wage increases.

Complicating matters however, is a poll showing about two-thirds of businesses have no plan to raise wages in the upcoming year.

It seems that for Japan, the stagnation will continue.

Spencer Fernando

Photo – Twitter

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