Financial Times FT.com

Japan recovery fails to reach workers

By Jonathan Soble and David Pilling

Published: March 24 2008 16:57 | Last updated: March 24 2008 16:57

One of the great enigmas of Japan’s six-year economic recovery is the failure of record profits at big companies to trickle into workers’ pockets.

In spite of years of predictions from the central bank that a tight labour market would set in motion a virtuous circle in which profits would be transmitted to wages and from there to household spending, that happy scenario has simply failed to materialise.

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