Sluggish wage growth can be a drag on economy
The government expressed concern over wage growth lagging behind corporate profitability, which reached a 15-year high last fiscal. Large companies saw significant profit increases, while employee expenses grew at a slower rate. Weak real wage growth could slow demand and increase income inequality, highlighting the need for a fairer income distribution between capital and labor to ensure long-term economic stability.
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The government expressed concern over wage growth lagging behind corporate profitability, which reached a 15-year high last fiscal. Large companies saw significant profit increases, while employee expenses grew at a slower rate. Weak real wage growth could slow demand and increase income inequality, highlighting the need for a fairer income distribution between capital and labor to ensure long-term economic stability. 
