What economic change occurred in Japan since 1960?

The economic change in Japan since 1960 that is signified by increased wages and prices due to labor shortages reflects the country's rapid industrialization and economic growth during that period. Following World War II, Japan experienced a post-war economic boom which led to the development of various sectors, including manufacturing and technology.

As companies expanded and the demand for labor grew, wages increased. This rise in wages was often a response to competition for a limited workforce, especially in the face of an aging population and declining birth rates. Consequently, higher wages also contributed to rising prices as businesses adapted to increased labor costs.

This context highlights how labor shortages influenced economic conditions. In turn, it showcases Japan's transition towards a more skilled workforce and the economy's responsiveness to market demands, particularly in the wake of its transformation into one of the world’s leading economies.