BLOOMBERG.COM
Japan’s wages may still be falling by some measures, but some analysts are so convinced that the country’s labor shortages are going to impose a cost shake-out for companies and markets that they’ve started making investment recommendations. "The labor shortage is becoming more acute," with unemployment at just 2.8 percent, Bank of America Merrill Lynch analysts including strategist Shusuke Yamada and economist Izumi Devalier wrote in a May 19 report. "We believe the wage pressures will rise gradually and feed into broader inflation in the long term." As a result, the bank prefers "labor-shortage beneficiaries over labor-shortage strugglers."
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Japan’s wages may still be falling by some measures, but some analysts are so convinced that the country’s labor shortages are going to impose a cost shake-out for companies and markets that they’ve started making investment recommendations. "The labor shortage is becoming more acute," with unemployment at just 2.8 percent, Bank of America Merrill Lynch analysts including strategist Shusuke Yamada and economist Izumi Devalier wrote in a May 19 report. "We believe the wage pressures will rise gradually and feed into broader inflation in the long term." As a result, the bank prefers "labor-shortage beneficiaries over labor-shortage strugglers."
Read more>