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flag Japan’s largest labor union demands a 5% average pay rise in 2026 to fight inflation and narrow income gaps.

flag Japan’s largest labor union, Rengo, is seeking a 5% average wage increase for 2026, continuing its push for higher pay to counter inflation and boost consumer spending. flag The demand includes at least 3% in base pay and aims to reduce income gaps, especially for small firms. flag Despite weakening corporate profits due to U.S. tariffs and rising costs, labor shortages are keeping wage pressure high. flag The outcome hinges on economic conditions, corporate health, and inflation trends, with the Bank of Japan watching wage growth as a signal for potential rate changes.

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