Rising Starting Salaries and the Widening Generational Wage Gap: Industry-Specific Compensation Improvements

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Why it matters :

The increasing wage disparity between younger and older generations is a growing concern in Japan.

While younger workers, especially new graduates, are experiencing significant salary hikes, middle-aged and older employees are not seeing the same improvements in their wages. This widening gap between age groups is causing tension and highlighting the challenges of maintaining fair compensation structures across different life stages.

The situation also raises questions about the sustainability of such disparities and the impact on social equity.

Key Points :

Rising wages for young people: Starting wages are rising, and salary is becoming an important factor in job hunting.

Widening generational gap: While wages are rising for younger workers, wages are stagnant for middle-aged and older workers, widening the gap.

Improved compensation in each industry: The restaurant industry, for example, is improving its compensation, strengthening its ability to recruit young workers. The restaurant industry, for example, is improving its compensation, strengthening its ability to recruit young workers.

Summary :

The report describes the current situation in which wage increases among young people are accelerating, while intergenerational disparities are becoming more apparent. In particular, the report emphasizes that starting salaries for new graduates have increased and that salary has become a major factor in the choices young people make when looking for a job.

Companies are raising starting salaries in order to attract talented young employees, and examples include Sumitomo Life Insurance and Nojima. Sumitomo Life Insurance raised the starting salary for new college graduates entering the company in 2026 to 290,000 yen per month, or 335,000 yen including about 20 hours of fixed overtime pay. Wage increases are also underway in the restaurant industry, with Zensho HD and Sukairaku HD providing examples of large wage increases.

On the other hand, wages for middle-aged and older workers have not been raised, and the wage gap with younger workers is widening. This has made the generational gap increasingly problematic.

Furthermore, wages and benefits are improving in each industry, and the image of long hours and low wages is improving in the restaurant industry. The food service industry is considered an attractive industry in that treatment is improving to secure talented people, and wages and positions are easily increased if one is competent.

Overall, while companies are improving the treatment of younger workers through wage increases, at the same time, the wage gap with middle-aged and older workers and differences in treatment by industry are also being highlighted.

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