Uniqlo owner Fast Retailing will raise base salaries for new graduates in Japan by as much as 12%, stepping up efforts to secure and retain talent as the country’s workers grapple with inflation.
Annual pay will grow by about 12% to ?5.9 million ($37,400) starting in March for university graduates in management-track programs, the Tokyo-based retailer said in a statement Monday.
Pay for other graduates will increase by about 10% to ?4.5 million.
“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%. The firm’s moves underscore a broader shift toward higher salaries in corporate Japan as labor shortages intensify and consumer prices reach levels not seen in decades.
The average wage in Japan was $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 U.S. had the G7’s highest level, $82,993, according to the OECD.
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