The wage increases reportedly being sought by Japan's largest labor organization fall short of expectations by some analysts and possibly short of what’s needed to meet ambitious goals being set by the new administration, which is seeking to ensure sustainable economic growth in part with strong pay raises.

For the 2025 spring wage negotiations, the Japanese Trade Union Confederation, known as Rengo, is aiming for a wage hike of "over 5%," the same goal as this year with a base pay increase of more than 3% in addition to a 2% periodic pay raise, according to media reports. The union is expected to demand a 6% increase for smaller companies.

The labor organization will confirm its targets on Friday at an executive meeting and will formally decide on its demands next month, the reports add.