It’s Not So Merry for Japan’s Workers

Shinichiro Takano, a manager at Suzuki Group, a construction company based in Tokyo, is looking for a few good scaffolders. He’s not alone: Across Japan, there are seven scaffolding job openings for every applicant, according to labor ministry data. That might have prompted Suzuki to offer higher salaries, yet the company is reluctant to increase wages because of its gloomy view of the future. Though the 2020 Olympic Games in Tokyo may create some opportunities, the outlook for construction in a country with an aging population and a heavily indebted government is dim. “Our wages won’t go up unless the society improves,” says Takano.

By many measures Japanese employers are doing just fine. Corporate earnings are strong, oil prices are low, and many companies are sitting on big cash reserves. The success of Abenomics—Prime Minister Shinzo Abe’s program to revive Japan’s economy—depends in part on consumers’ willingness to spend more. Tightfisted companies such as Suzuki aren’t helping.