Japan

Intelligence for Better Decision Making

Keidanren Issues 2026 Guidelines Calling for Standardized Base Pay Increases in Spring Wage Negotiations
Jan. 22, 2026 | Firms

Japan’s leading business federation Keidanren has issued its 2026 spring labor-management negotiation guidelines, urging companies to adopt base pay increases as the standard approach to wage growth.

**The guidelines shift from the 2025 report’s suggestion to merely consider base pay raises, recommending instead that firms take a medium- to long-term perspective on wage growth to secure positive real wages amid rising prices and interest rates.**
Chair Hitoshi Nagasawa stressed that raising workers’ wages will strengthen the Japanese economy, even as US tariffs and strained relations with China create external challenges. Keidanren pledges to promote wage increases, including base-up adjustments, provided no major crisis emerges, and emphasizes that companies can differentiate pay hikes according to job roles and individual contributions.

**In 2025 spring negotiations, large companies achieved an average wage increase of 5.39 percent, and Keidanren expects comparable or higher gains in 2026.**
Yet real wages have fallen for eleven consecutive months through November 2025, showing that nominal wage gains have not kept pace with inflation. Companies and government alike will need to pursue substantial pay rises alongside measures to curb price inflation.

**Recognizing that small and medium-sized enterprises employ roughly seventy percent of Japan’s workforce, the guidelines call for concrete steps to sustain wage growth in these firms.**
Keidanren urges large companies to support their SME suppliers through fair price negotiations and to assist them in personnel management and digitalization efforts, ensuring costs can pass through the supply chain.

Nagasawa expressed concern that cost pass-through remains inadequately implemented, and he urged companies to establish proper mechanisms to maintain momentum in wage increases and support economic stability.

**The 2026 spring labor offensive begins on January 27 with a meeting between Keidanren and Rengo chairmen.**
Keidanren notes that average wage increases at large firms have risen from 3.99 percent in 2023 to 5.58 percent in 2024 and 5.39 percent in 2025, even as real wages declined by 2.8 percent year-on-year in November 2025. This gap reflects the ongoing mismatch between wage growth and inflation.

**Aligning with Prime Minister Sanae Takaichi’s call for a third consecutive year of around five percent wage hikes, Keidanren reaffirms its role in sustaining this momentum.**
While large companies have led substantial increases, SMEs have recorded average hikes of around four percent and now face signs of “wage-increase fatigue” as labor costs rise.

**To reverse the decline in real wages, the guidelines urge large firms to engage in good-faith price negotiations with SME contractors and reference the newly enacted Toritsugi Act, which mandates proper subcontracting transactions and prohibits unilateral price setting without consultation.**
Keidanren views these measures as essential to improving the business environment for SMEs and stabilizing overall wage growth around five percent.

**In its January 20, 2026 guidelines, Keidanren committed to leading this year’s spring wage negotiations in line with the Japanese Trade Union Confederation’s target of at least five percent increases.**
The federation also proposed weighting pay hikes more heavily toward individual contributions, providing fixed-amount payments to all workers, and granting larger increases to younger employees.
Heavy Snowfall Disrupts Transportation and Power in Japan’s Sea of Japan Coastal Regions
Jan. 22, 2026 | Transportation & Logistics

Strong cold air flowing across Japan is set to drive heavy snowfall along the Sea of Japan coast from the northern to western regions through late January 2026.

**The Japan Meteorological Agency projects that this strong cold air will persist until around January 25, 2026, producing heavy snow primarily along the Sea of Japan coast.**
Beginning January 22, snowfall will intensify in the Hokuriku and San’in areas, and even locations on the Pacific side that rarely see snow may record significant accumulations.

Above eastern Japan, temperatures at roughly 5,000 meters may fall below –40 °C, while western Japan could see readings below –12 °C at about 1,500 meters, creating conditions that support heavy snowfall in lowland coastal zones.

**Snowfall rates have already reached as much as 24 centimeters in six hours in some areas.**
Forecasts through Friday morning call for total accumulations up to 100 centimeters in Hokuriku and Niigata Prefecture, with 30 to 70 centimeters expected across Tohoku, Kinki, Hokkaido, Tokai, and Chugoku. In addition, bands of heavy snow clouds tied to the Japan Sea polar air mass convergence zone may extend snowfall into typically clear flatlands and Pacific coast areas.

**Heavy snow may disrupt road networks and force traffic closures to prevent vehicle stranding.**
Overhead power lines could suffer outages from snow loading, and mountainous terrain faces elevated avalanche hazards. Starting January 22, authorities plan preventive closures on several expressway sections in Gifu Prefecture and neighboring areas, including the Meishin Expressway between Ritto Konan (Shiga) and Ichinomiya (Aichi), the Tokai-Kanjo Expressway from Yoro to Minoseki (both in Gifu), and the Hokuriku Expressway between Maibara (Shiga) and Tsuruga (Fukui). Some national routes may also close depending on snowfall severity.

**Officials from the Chubu Regional Development Bureau and the Nagoya Local Meteorological Observatory strongly urge the public to avoid nonessential travel, secure necessary supplies, and consider rescheduling plans as conditions warrant.**

Monitored Intelligence for Japan - Jan. 23, 2026


News
Media
386

Government
Releases
55

City/State
Releases
128

Embassy
Releases
1
Foreign
Service
Advisories
0
Academic/
Think
Tank
19


Podcasts
0


Videos
0

Social
Media
0

Business
Releases
1

Erudite Risk takes an all risks approach to intelligence reporting. We categorize key intelligence into one of 40 different risk intelligence categories.

The goal is to provide intelligence that allows decision makers to avoid being blindsided by what they may have missed, while informing them to make better decisions as well.

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11
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4
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Erudite Risk also includes operations categories so you can monitor the environment for better decision making. Everything is tied together--what happens in risk affects operations and what happens in the market impacts risk profiles.

We categorize key intelligence into one of 30 different operations intelligence categories.

Different roles and functions within the organization can monitor different key issue areas. HR may monitor employment, wages, regulations, labor and management relations, etc., while P&L leaders may monitor overall developing trends.

Operations Categories Reported on Today

Operations Category
Items Reported On
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9
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3
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6
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7
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4
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17
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1
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3
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2
Economic Growth
3
Trade Issues and Numbers
4
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1
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1
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1
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1

【特集】2026年の課題と展望―人口減少社会と地域放送メディアの論点①―

Special Issue: Challenges and Prospects for 2026—Key Issues of Regional Broadcast Media in a Depopulating Society①

Tokyo Foundation for Policy Research | Local Language | AcademicThink | Jan. 23, 2026 | UndeterminedDemographics

In 2025, Japan marked the 100th anniversary of its broadcast media, coinciding with the appointment of its first female prime minister. The broadcast media landscape is undergoing significant transformation due to shifts like smartphone proliferation and video streaming, rendering traditional broadcasting insufficient on its own. Broadcasters face critical challenges in diversifying and expanding business domains to sustain operations, especially amid accelerating population decline. This demographic crisis has led to closures and consolidations, including the shutdown of eight community radio broadcasters in 2025, raising concerns about the disruption of local information flow and democratic connectivity.

To address these challenges, the article emphasizes a multifaceted approach combining broadcasters’ business innovation, industry restructuring, national support systems, and public-private partnerships with local municipalities. Regional broadcasters, constrained by limited budgets and resources compared to major Tokyo-based key stations, are gradually adopting new strategies such as aggregating localized video content through platforms like the Local Content Bank, and leveraging 4K content to target international markets, including expansions into FAST (free ad-supported streaming TV) services. The national government supports these efforts with ambitious goals, such as achieving ¥20 trillion in overseas content sales by 2033, backed by policies and funding initiatives designed to strengthen the broadcasting and content industry.

Regional broadcast media business domains are diversifying into four key areas: content-related broadcasting and non-broadcasting businesses focused on both regional and national markets, and non-content regional businesses addressing regional revitalization and problem-solving. Beyond content, broadcasters are engaging in activities such as disaster prevention information, local product promotion, event management, e-commerce, childcare, nursing care, digital transformation projects for municipalities, and acting as intermediaries in business succession and startup investment. The potential survival strategy for regional broadcast media lies in becoming hubs that connect people and organizations locally and externally, provided these new ventures can be economically viable rather than solely charitable. The continuation of these efforts will be further examined in forthcoming essays focusing on specific segments such as cable television, which has demonstrated noticeable revenue growth and business expansion.

Russia: Strategic bombers flew over Sea of Japan for more than 11 hours

NHK | English | News | Jan. 23, 2026 | Geopolitical Conflict and Disputes

Russia's Defense Ministry reported that Tupolev-95 strategic bombers conducted a flight over international waters in the Sea of Japan lasting more than 11 hours. The bombers were accompanied by Sukhoi fighter jets, and the ministry released video footage showing the aircraft in flight.

The Tupolev-95 bombers, which are capable of carrying nuclear weapons, regularly fly over international waters in various regions including the Arctic, North Atlantic, and Pacific. The ministry emphasized that these flights comply with international laws and cited similar missions conducted in January, August, and October of the previous year. Additionally, a joint patrol involving Russian and Chinese bombers took place in December.

【開催報告】ウェビナー「高市政権の財政・税制の検証と今後の課題」(2026年1月8日 開催)

Event Report Webinar: Examination of the Takai Administration's Fiscal and Tax Policies and Future Challenges (Held on January 8, 2026)

Tokyo Foundation for Policy Research | Local Language | AcademicThink | Jan. 23, 2026 | UndeterminedTaxes

The Takai administration has positioned "responsible proactive fiscal policy" as the cornerstone of its economic and fiscal management strategy, unveiling its first budget proposal for Fiscal Year Reiwa 8 with a general account total of ¥122.3 trillion, the largest for the second consecutive year. Tax revenues are forecasted to hit a record ¥83.7 trillion, while debt-service costs surpass ¥30 trillion. In a webinar held on January 8, 2026, fiscal experts from the Tokyo Foundation debated the realism of maintaining debt growth within economic growth rates as a substitute for achieving a primary balance surplus, among other fiscal policy concerns.

The discussion focused on various aspects, including the evaluation of the primary balance on a general-account basis, problems with the fiscal deficit-to-GDP ratio indicator, and the complexities of budget formulation under a small ruling party. Tax reforms received particular attention, including debates on income thresholds—specifically the ¥100 million threshold—and the review of burdens on extremely high incomes. The experts also assessed the expansion of investment tax cuts aimed at strengthening the economy, the clarity of priorities in the tax reform package, evidence-based policy making (EBPM) considerations, and the prospects for a Japanese version of DOGE (digital governance).

Further dialogue centered on the introduction and potential role of tax credits with benefits within the broader framework of tax and social security integration. Key issues raised included whether benefits should be allocated to family or individual units, the division of responsibility between national and local governments, funding mechanisms, and the digital infrastructure necessary for implementation. The webinar drew on detailed research and policy materials, emphasizing ongoing challenges and future directions in Japan’s fiscal and tax policy landscape under the Takai administration.

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