Part-Time Workers in Japan See Record Wage Increases Amid Labor Shortage

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Part-Time Workers in Japan See Record Wage Increases Amid Labor Shortage

Part-Time Workers See Record Wage Increases in Japan

The average pay for part-time workers in Japan surged by a record 6.53% during this year's "shunto" spring labor negotiations, driven by a nationwide trend of wage increases. This marks the highest increase since the labor union organization UA Zensen was established in 2012.

The initial tally, announced by UA Zensen on March 13, combines base pay increases with regular pay hikes based on age and length of service. It includes data from 95 unions representing around 500,000 part-time workers.

UA Zensen, which represents trade unions in the distribution, restaurant, textile, and other industries, attributes the significant wage hikes for part-timers to the ongoing labor shortage. President Tomoko Nagashima stated, "The prompt and substantial responses, offering full pay increases, have created momentum for higher wages and greater pay equality, marking progress in addressing the wage gap."

High wage increases for part-time workers were also achieved in regional areas where labor shortages are more acute. Supermarkets are among the sectors that have experienced significant pay hikes. Aeon Retail Co., with numerous stores in regional areas, agreed to a 7.07% wage increase. Daiei Inc., which operates in Tokyo and the surrounding areas, as well as in the Kansai region, settled on a 7.08% hike. Yaoko Co., based in the Kanto region, agreed to a 9.51% increase.

In contrast, the average wage increase for regular employees was 5.37%, down 0.54 percentage points from last year. This shows a slight slowing in the pace of the pay hike. Of the 139 unions representing 260,000 regular employees, 46 received the full pay increase requested, and 14 received even more than their demands.

With roughly 60% of its members being part-time workers, UA Zensen is advocating for more equitable pay across different types of employment. The organization reported that part-time workers' wage increase rates have outpaced those of regular employees for nine consecutive years.