Japanese Companies Urged to Avoid Job Cuts

Yen for Employment: Japanese Prime Minister Taro Aso wants employers to “raise wages and secure employment” to help workers cope with the economic downturn, according to a report by Kyodo News. Raising wages may help alleviate workers’ concerns over the increasing cost of living, the news article says. Aso reportedly made the request during a meeting with Fujio Mitarai, chairman of the Japan Business Federation, and Tadashi Okamura, chairman of the Japan Chamber of Commerce and Industry. The rare move is seen as a run-up to annual labor/management wage negotiations scheduled to begin in the spring. Companies are urged to “avoid canceling job offers” that have been extended already to graduating students. Although business leaders appear receptive to the idea of stabilizing employment and minimizing layoffs, they are less open to advocating wage increases, noting that many small and midsize companies can’t absorb the additional cost.