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flag Japanese firms agreed to a 5.26% average pay rise in 2026, marking three years of increases due to labor shortages and inflation.

flag Japanese companies have agreed to a 5.26% average wage increase for 2026, the third consecutive year of gains, driven by labor shortages, inflation, and strong corporate profits. flag The rise, confirmed by major labor and employer groups, reflects a shift from Japan’s traditionally conservative pay practices and aims to boost worker livelihoods and consumer spending. flag Meanwhile, Japan’s parliament approved nominees for the Bank of Japan board who support maintaining low interest rates, ensuring policy continuity amid ongoing deflationary pressures and global economic uncertainty.

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