The Democratic Party of Japan-led government should focus on reforming the tax and social welfare systems this year and work to improve job prospects for young people, Nobuaki Koga, president of the Japanese Trade Union Confederation (Rengo), recommends.

"A consumption tax increase should be considered" to fund welfare programs, the leader of the biggest DPJ support group said at its headquarters in Chiyoda Ward, Tokyo.

And the DPJ should work to sell the public on the importance of raising the tax, he added.