BOJ blames Japan's unique labor practice for low wages, inflation - RTRS

In its rare analysis report of Japan’s labour market released on Friday, the Bank of Japan (BOJ) blamed the labour market practices a key reason behind lower wages and overall inflation.

Key Points from the report (via Reuters):

“Wages for temporary workers are "clearly on the rise" as companies struggle to lure employees, with the job market having tightened to levels not seen since Japan's asset-inflated bubble era in the early 1990s.

Japan's unique pay scale, where salaries rise according to seniority, also discourages job hopping and prevents a tight job market from pushing up overall wages

The slow growth in permanent workers' income, which makes up nearly 70 percent of total wage-earners' income, partly explains why wage growth is subdued despite a strong economy"