Japan firms curb jobs, cut pay to cope with coronavirus pain – Reuters Corporate Survey

According to the monthly Japanese Corporate Survey, conducted by Reuters, many of the country’s firms have curbed hiring, laid-off employees, or announced pay cuts to tackle the coronavirus impact on their businesses.

Key findings

“Out of the 55% of Japan firms who saw the pandemic hitting their labor force, two in five said they have curbed new hiring, a quarter slashed pay and another quarter laid-off workers, when asked to pick multiple responses.

Meanwhile, only 44% of Japanese firms said they appreciated the government’s response to the economic fallout from the new virus, which many criticised as being too slow as it was tied up in bureaucratic red tape.

Should focus the most on when dealing with the pandemic, 30% said the prevention of infections, while 29% said corporate financing.

The survey underscored the view of some economists who say that rate could be much higher if you take into account discouraged workers and those on furlough.”