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Japan – Government calls on staffing firms to pay higher wages

19 February 2013

According to a news report in Nikkei Digital Media, the Japanese Prime Minister has announced major changes that would increase the pay rates of temporary agency workers in the country, the second-largest staffing market in the word.

Nikkei reporter, Nihon Keizai Shimbun said: “Prime Minister Shinzo Abe has urged employers to raise salaries, and the government is also expected to call on temporary staffing companies to raise the wages of temporary workers as well. However, given that it is difficult for staffing firms to ask their corporate clients to raise salaries for temporary workers, an official at a domestic brokerage said staffing agencies will have to bear the costs of wage increases, which would lower their profit margins.”

The Prime Minister last week asked business leaders to raise wages in what has been described as a “rare” move to speed up the fight against deflation. He believes this would increase optimism and consumer demand. 


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