However, supply and demand conditions in the labor market for regular employees do not seem to be so tight, and therefore it seems difficult to expect significant increases in their base salaries, which will be the subject of discussion during the wage negotiations.
Considering that (1) most wage increases could be regular annual raises or a rise in lumpsum payments, although base salaries could rise to a certain level, (2) the proportion of nonregular employees – whose wages are not discussed in the wage negotiations – to total employment is increasing, and (3) the rates of wage increases in small firms and in the public sector are likely to be relatively low, the rate of overall wage increases could remain only moderate despite the temporary positive effects expected from the termination of the measures that reduced salaries of government employees to secure funds for reconstruction work after the Great East Japan Earthquake.