Japanese Salaries basically unchanged over the last 10 years

Recently the IMF wrote that Japan needs to increase wages, so we thought we would see if that was true. It is. As the only individual-level Salary data is on a parent-only basis we compared Personnel Expenses to the number of Employees and then aggregated up the data. Interestingly on an aggregate basis the number of Employees (including Temp workers) in Companies with market cap above ¥30bn increased 34% in the last 10 years. This is compared to an increase in Personnel Expenses of 36%. So basically companies have added more people but not increased wages / Salary.

However, if we look at the sector level there is some discrepancy. Industrial Services is a great example. Personnel Expenses are basically flat, while the number of Employees has increased 17% in the last 10 years.  Transportation is basically the same with only a 2% increase in Expenses and a 20% increase in Employees. Energy Minerals is the worst with a 32% increase in Employees and only a 3% increase in Personnel Expenses. Health Services is really the only sector that had a significant increase in Personnel Expenses and not in Employees.

While we are not advocating huge Personnel Expenses, if your Employees do not have money they cannot buy your products. It is the circle of life…..

Japan Wage & Employment Changes by Sector

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