A plan designed to protect U.S.-born workers now faces scrutiny as unemployment climbs and wages falter. Many of the job openings are in physically demanding sectors that native-born workers have largely avoided—at least at current wage levels.

Economists at ING see Japan’s rising wages and resilient household spending as potential triggers for a Bank of Japan interest rate hike in October. While the increase in earnings boosts optimism for inflation, political uncertainties and tariff agreements continue to complicate the outlook.