Uniqlo’s owner boosts new graduate pay as Japan faces inflation

UNIQLO owner Fast Retailing will raise base salaries for new graduates in Japan by as much as 12 per cent, stepping up efforts to secure and retain talent as the country’s workers grapple with inflation. 

Annual pay will grow by about 12 per cent to 5.9 million yen (S$48,350) starting in March for university graduates in management-track programmes, the Tokyo-based retailer said in a statement on Monday. 

Pay for other graduates will increase by about 10 per cent to 4.5 million yen.

“By fostering a virtuous cycle of growth and wage increases, Fast Retailing aims to boost overall productivity and achieve sustainable growth for the company,” the company said.

Fast Retailing implemented a similar wage hike in 2023, bumping up annual pay for full-time employees in Japan by as much as 40 per cent.

The firm’s moves underscore a broader shift toward higher salaries in corporate Japan as labour shortages intensify and consumer prices reach levels not seen in decades. 

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The average wage in Japan was US$49,446 in 2024 - the lowest level of the Group of Seven nations, Organisation for Economic Co-operation and Development data show - amid decades of economic stagnation. The US had the G-7’s highest level, US$82,993, according to the OECD. BLOOMBERG