Some service-sector businesses have long relied on low-cost manpower to survive the competition. But in recent months, wages for part-time workers in restaurant chains have been sharply rising. Some companies in various sectors are moving to promote part-time and other irregular workers to full-time positions in an effort to secure enough employees.
Better working conditions and more stable employment will prompt workers to spend more, and higher earnings of companies as a result of increased consumer spending can result in more wage hikes. Even though it will increase their manpower costs, Japanese firms are urged to raise wages and offer more full-time jobs to achieve this positive cycle.
Some companies will also respond to the tightening labor supply by investing in systems that save on manpower. Such investments will not only generate new demand but also help raise the productivity of those firms, thereby contributing to the growth potential of the Japanese economy.