Yamanashi Prefecture Aims to Curb Youth Exodus with Joint Declaration for Wage Increases Involving 39 Organizations

Yamanashi Prefecture (Governor Kōtarō Nagasaki) held a "Joint Declaration Ceremony for Sustainable Economic Development and Improvement of Wage Levels" in Kōfu City on June 23.

The backdrop to this initiative is the deepening outflow of young people from the prefecture and a shortage of workers, amidst ongoing soaring prices and labor shortages. A survey in Reiwa 7 (2025) revealed that the U-turn employment rate for students who advanced to universities outside the prefecture was 21.8%, the lowest in 13 years, and the number of people aged 20-24 moving out of the prefecture reached 1,480. In light of these circumstances, the prefecture has positioned wage level improvement not merely as an issue between labor and management, but as a critical challenge related to the sustainability of the regional economy, demonstrating a commitment to collaboration among businesses, workers, administration, and related organizations.

A total of 39 organizations participated in the joint declaration, including the Yamanashi Employers' Association, the Yamanashi Chamber of Commerce and Industry Federation, the Yamanashi Federation of Small and Medium Business Associations, the Yamanashi Prefectural Central Association of Small and Medium Enterprise Organizations, local financial institutions, Rengo Yamanashi, all municipalities within the prefecture, the Yamanashi Labor Bureau, and Yamanashi Prefecture.

At the ceremony, attended by approximately 100 people including representatives from labor-management organizations and administration, Governor Kōtarō Nagasaki pointed out that the stagnation of real wages is affecting people's sense of well-being and their anxieties about the future, amid an uncertain economic outlook due to soaring prices and international instability. He then appealed for the need for businesses, workers, and the administration to unite as "one team" and work towards a sustainable increase in wage levels to realize a "society where hard work is rewarded."

The first part of the event featured a talk session with Governor Nagasaki, Mayor Nobuyuki Murakami of Uenohara City, President Futoshi Shirakawa of Sanyo Seiko Co., Ltd., and Hiroko Matsunaga, branch manager of UA Zensen Yamanashi and acting representative of Rengo Yamanashi. The session was moderated by Hisashi Yamada, a professor at Hosei University Graduate School of Business Administration and a visiting researcher at the Japan Research Institute.

Governor Nagasaki stated that the outflow of young people from the prefecture is "the biggest problem Yamanashi Prefecture is facing right now," and acknowledged that low wage levels are accelerating this outflow. He also emphasized the importance of the administration supporting businesses and workers, rather than leaving wage increases solely to the efforts of companies.

Mayor Murakami described the reality in Uenohara City, which is adjacent to Tokyo and Kanagawa, where the wage gap with urban areas within commuting distance directly leads to a loss of talent. He mentioned cases of city employees転職ing to municipalities in the Tokyo area, expressing a sense of crisis that the outflow of young people and families with children is leading to a vicious cycle of regional economic decline and population decrease.

President Shirakawa frankly discussed the difficulty for companies to secure funds for wage increases amidst soaring prices and rising raw material costs. On the other hand, he stated, "A wind is blowing in Yamanashi Prefecture," and emphasized the need to review old business models and promote the creation of a better working environment and increased added value by utilizing DX, AI, and robots. He also touched upon his company's philosophy of "a company where I would want my own child to work," indicating that creating an environment where employees can perform at their best ultimately leads to sustainable growth and wage increases.

Ms. Matsunaga pointed out that while wage increases are progressing for both regular and part-time employees as a result of UA Zensen's spring labor negotiations, they are not keeping pace with price increases, leading to a decline in real wages, which in turn causes anxiety about living expenses and stagnation in consumption. She also stated that workers themselves need to learn, improve their skills, and contribute to productivity improvements, and appealed for the importance of labor and management working together through dialogue to improve workplace environments and increase wages.

Following the talk session, participating organizations issued a "Joint Declaration for Sustainable Economic Development and Improvement of Wage Levels." The declaration outlines that companies will promote productivity improvements and higher added value, and reflect these achievements in wages; workers will engage in value creation through continuous learning and challenges; and the administration will support the initiatives of companies and workers. Furthermore, it was confirmed that the region as a whole will cooperate to create a virtuous cycle of an economy that supports wage increases, aiming to realize a "society where hard work is rewarded."

In the second part, Hisashi Yamada gave a lecture on the theme of "Wage Increase Strategies for Sustainable Growth - A Virtuous Cycle Created Together by Businesses, Workers, and the Region."

Mr. Yamada explained that soaring prices and labor shortages should be viewed not as temporary phenomena, but as a change in the premises of corporate management. He then pointed out that escaping from traditional price-cutting competition and increasing the value of products and services, while offering them at appropriate prices, is the key to sustainable wage increases. He also emphasized the importance of regional companies collaborating with each other, in addition to individual company efforts, to foster human resources, develop sales channels, and pass on costs.

He stated that companies should mutually recognize appropriate cost pass-through, workers should strive for skill development, and the administration should work to create opportunities for shared understanding and improve the environment, expressing a consensus that aligns with the significance of the joint declaration.

Yamanashi Prefecture will continue to promote sustainable wage level increases and the creation of a virtuous cycle in the regional economy through the integrated efforts of businesses, workers, and the administration, while balancing the protection of workers' livelihoods with support for regional industries and companies.

Event Overview

Date: June 23, Reiwa 8 (2026)

Venue: Chaterais Hotel Danrokan Crystal (Kōfu City, Yamanashi Prefecture)

Attendees: Approximately 100 people

Participating Organizations: Economic organizations, financial institutions, labor organizations, municipalities within the prefecture, Yamanashi Labor Bureau, Yamanashi Prefecture, etc. (39 organizations in total)

Main Program Details

Part 1:

・Governor's Address ・Talk Session "Towards Sustainable Economic Development and Improvement of Wage Levels" ・Joint Declaration Ceremony

Part 2:

・Top Seminar "Wage Increase Strategies for Sustainable Growth" Lecturer: Hisashi Yamada Professor, Hosei University Graduate School of Business Administration / Visiting Researcher, Japan Research Institute