Shifting employment trends in the world’s third-largest economy will boost wage growth going forward, according to Japanese Prime Minister Shinzo Abe.

“Considering the tightness happening in the labor market, I think there will be a gradual increase of wages as demanded by market pressures,” he said in an exclusive joint interview with CNBC and Broadcast Satellite Japan on Monday.

Recent official data showed the job offers to applicant ratio rose to 1.45 in March — the highest level since November 1990.

“If you want to recruit good human resources, you will have to improve your conditions of hire,” Abe noted.