TOKYO: The number of prefectures in Japan with a minimum hourly wage of over 1,000 yen will double to 16 in fiscal 2024 from eight in the previous year, reflecting competition for human resources amid a labor shortage.

The minimum wage panels of 45 of the country’s 47 prefectures have recommended minimum wage increases, after the central government’s Central Minimum Wages Council suggested in late July that the nationwide average minimum wage be raised by 50 yen to 1,054 yen.

Of the 45 prefectural wage panels, 25 proposed increases of more than 50 yen, including 59 yen in Ehime, 58 yen in Shimane and 57 yen in Tottori.

The minimum wage will be raised to 1,034 yen in Shizuoka, 1,020 yen in Hiroshima and 1,010 yen in Hokkaido.

Prefectural governments will implement their new minimum wages on Oct. 1 or later.

The minimum wage hikes come amid rising prices and concerns that workers could move to areas with higher wages.

Meanwhile, the higher minimum wages could weigh on small businesses, which are struggling to raise prices to cover higher costs.

JIJI Press