On this basis, from an overall perspective, despite the steady improvement evident in economic activity as a whole, wages have been slow to recover. Some people suggest that this is due to Japan’s employment practice, which places importance on securing jobs.
Firms are cautious about raising regular employees’ wages because they are difficult to cut even during periods of recession, and labor unions seem to be reluctant in general to demand sharp wage hikes, since they prioritize stability of their employment in the long run.