Behind-the-Scenes Economic Stories Heard in a Taxi, Part 1: A Steelworker's Honest Opinion: 'Demand is down, but sales are up... so why aren't my wages?'

Today's passenger was a man who looked like a salaryman.
During the ride from Nishiki, a bustling district in Nagoya, to his home, a conversation started naturally while we were waiting at a red light.

Passenger: "Driver, how's the economy?"
Me: "I wouldn't say it's very good."

Passenger: "I bet. I work for a steel materials manufacturer, and demand has been dropping for the past few years."
Me: "When you say steel materials, do you also handle steel for construction?"

Passenger: "Yes. If construction is active, shipments go up, too."
Me: "Indeed, I don't see any new large-scale building projects starting up in Nagoya city either."

Passenger: "But sales are up compared to last year. Yet, my salary isn't going up."

With that one remark, the car went a little quiet. The honest feelings leaked from the front lines of the steel industry have a reality that is hard to convey in news headlines.

The Current Japanese Economy: The Reality of 'Walking a Tightrope' Seen Through Numbers

Just as the passenger said, the steel industry is seeing stagnant volume (demand/shipments) while the monetary value (sales) is somehow growing. This is also a microcosm of the Japanese economy as of 2026.

• Crude steel production in 2025 was approximately 80.67 million tons (a 4% decrease from the previous year), the lowest level in half a century. Domestic demand for construction and automobiles is weak, and market conditions are tough due to pressure from low-priced Chinese exports.

• Even so, major manufacturers' sales revenue increased by over 10% compared to the previous year (Nippon Steel saw over 7 trillion yen in the April-December 2025 period). The reason is that the weak yen (around 150 yen to the dollar) has increased yen-denominated export sales, and the passing on of high raw material costs (iron ore, scrap) is effective.

• However, profits are tight, and Nippon Steel revised its net loss for the fiscal year ending March 2026 down to a 70 billion yen deficit. A state of "selling but not making money" continues.

While macroeconomically it is said that "the economy is recovering moderately," at the micro (front-line) level, it is hitting a wall of high costs.

The Two Faces of Inflation: Cost-Push vs. Demand-Pull

The passenger's story is a classic example of "bad inflation." Depending on the cause, inflation can be "good" or "bad."

In Japan today, the shadow of cost-push inflation remains strong. If the price of steel rises further, it could accelerate a vicious cycle: higher construction costs → fewer project starts → further stagnant demand...

The Front Lines of 'Cost-Push' Seen from a Taxi Driver's Perspective

Actually, the same wave of "cost-push" as this steel story is hitting my workplace, the taxi industry, directly.
Starting October 14, 2025, taxi fares in the Nagoya transport zone effectively increased by about 10%.

• The initial fare distance was shortened by 100m (1.011km → 0.91km), and the additional fare increased by 10 yen (90 yen per 232m → 100 yen).

• The overall revenue increase rate is about 10.54%. The main reasons are rising supply costs such as soaring fuel prices, rising labor costs, dispatch app fees, and cashless payment processing fees.

Immediately after the price hike, a noticeable change was a decrease in short-distance users.

• People who would "just take a short ride" after drinking or shopping have decreased, and more people are walking home or getting off before the meter clicks up.

• While mid-to-long distance trips (between airports and stations, etc.) haven't decreased that much, there is definitely an increase in "frugal routes" where people take the subway to the nearest station and then use a taxi from there.

This is the very definition of cost-push inflation. It is a vicious cycle where the prices of goods and services rise → households defensively curb spending → demand decreases → the economy cools down.
Just as high steel prices stop construction, taxi fare hikes are changing the "short trips" around town.

Conclusion

As a taxi driver, I listen to all sorts of people every day, but I feel this one remark from the steelworker symbolizes Japan in 2026.
"Sales are up... but my salary isn't going up."
It might change a little depending on the results of the spring wage negotiations, exchange rates, and trends in China. But the temperature on the ground remains a "tightrope walk."
What kind of behind-the-scenes stories will I hear next time?
Passengers, if you happen to ride in my taxi, please share your "behind-the-scenes story" with me, too.