— Japan Oct Avg Base Wage +0.1% Y/Y, 1st Rise In 30 Mo; Sep Flat
— Japan Oct Real Average Wage +0.4% Y/Y Vs Sep +1.5%
— Japan Real Average Wage Posts 10th Straight Y/Y Rise
— Japan Oct Special Pay +5.2% Y/Y Vs Sep +13.6%
— Japan Oct Regular Jobs +0.7% Y/Y, 9th Rise In Row; Sep +0.6%

TOKYO (MNI) – The total nominal average monthly cash earnings per
regular employee in Japan rose 0.6% year-on-year to Y268,951 in October,
posting the eighth straight y/y gain, data from the Ministry of Health,
Labor and Welfare released on Tuesday showed.

The year-on-year growth in total cash earnings decelerated slightly
from +0.9% in September as the growth in both overtime pay and special
pay including bonuses slowed while the base wage posted its first y/y
rise in two and a half years.

The 1.0% rise in total cash earnings in March 2010 was the first
y/y increase in 22 months.

Bonuses and other special pay rose 5.2% in October, posting the
second straight y/y rise after showing +13.6% in September.

Meanwhile, overtime pay rose 6.4%, showing the 10th straight y/y
increase. It decelerated from +10.1% in September and +10.9% in August.
January’s 2.4% gain in overtime pay was the first y/y rise in 18 months.

The “base wage” (scheduled cash earnings at surveyed companies that
employ five or more people) — the key indicator for a recovery — rose
0.1%, showing the first gain in 30 months since +0.1% in April 2008.

Overtime hours worked and overtime pay hit bottom in March 2009,
which means they are still likely to show year-on-year growth for now
due to a favorable base effect.

In inflation adjusted terms, the total average wage rose 0.4% in
October, resulting in rises for 10 consecutive months, following the
1.5% gain September. Wage growth in inflation adjusted terms in October
was the lowest since -4.2% in December 2009.

Overtime hours worked in the manufacturing sector posted the 11th
straight year-on-year rise in October, up by 13.7% after surging 22.1%
in September and posting the record growth of 57.3% in March 2010.
Overtime hours have recovered steadily from the record drop of 48.9% in
March 2009.

From the previous month, overtime hours worked in the manufacturing
sector fell 3.1%, showing the second straight m/m decline on a
seasonally adjusted basis, after falling 2.9% in September.

Total overtime hours worked for all industries rose 5.2% in October
following +7.6% in September and +10.1% in August. January’s +4.4% was
the first year-on-year rise in 18 months.

Total hours worked for all industries continued to rise in October,
up by 0.7% y/y, after +2.0% in September.The 0.4% rise in January this
year was the first y/y gain in 18 months.

Three years of steady job creation until April 2009 were replaced
by job losses or flat employment levels through the end of 2009, but the
latest data indicate a clearer recovery in the labor market.

The number of regular workers rose 0.7% from a year earlier,
marking the ninth straight y/y rise after rising 0.6% in September.The
gain in February was the first y/y rise in 10 months since +0.3% in
April 2009.

The 0.7% y/y increase in October was the highest gain in 21 months
since +0.9% in January 2009.

Cash earnings include overtime and bonuses. Regular employees are
workers on permanent payrolls as well as those with part-time status.

tokyo@marketnews.com
** Market News International Tokyo Newsroom: 81-3-5403-4437 **

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