— Japan Apr Average Wages -1.4% Y/Y Vs Mar -0.1% Y/Y
— Japan Apr Avg Wages Post 2nd Straight Y/Y Drop
— Japan Govt Excludes Some Quake-Hit Area Data In Mar, Apr
— Japan Apr Avg Base Wages -0.7% Y/Y, 4th Drop; Mar -0.8%
— Japan Apr Real Avg Wages -1.9% Y/Y Vs Mar -0.1%
— Japan Apr Special Pay -15.8% Y/Y Vs Mar +9.3%
— Japan Apr Regular Jobs +0.7% Y/Y, 15th Rise In Row; Mar +0.8%
— Japan Apr Overtime Hours Worked -5.7% Y/Y, 2nd Drop; Mar -1.0%
— Japan Apr Total Hours Worked -2.0% Y/Y, 4th Drop; Mar -1.3%

TOKYO (MNI) – The total nominal average monthly cash earnings per
regular employee in Japan fell a preliminary 1.4% year on year to
Y272,255 in April, posting the second consecutive monthly y/y fall in
the aftermath of the March disaster, data from the Ministry of Health,
Labor and Welfare released on Tuesday showed.

The April drop in average wages — the largest since -5.9% y/y in
December 2009 — was caused by a second consecutive and sharp drop in
overtime hours worked as well as a fourth straight y/y fall in scheduled
hours worked.

Total hours worked had already began to fall at the start of the
year but the pace of the decline has increased after the March 11
earthquake wrecked production capacity and supply chains.

The ministry has said it is excluding wages and working hours data
from the three northern prefecture hit hardest by the disaster — Iwate,
Miyagi and Fukushima — from its labor survey for March and April data,
warning that the wages data could show figures that are higher than what
they really are (thus, total wage drops may be underestimated).

Wage levels in those provinces tend to be below the national
average, it has said.

Overtime pay fell 3.4% on year, following +1.7% in March, posting
the first fall in 16 months.

Average “base wages” — the key indicator for a recovery — fell
0.7% on year, showing the fourth straight monthly y/y drop, following
-0.8% in March.

Base wages, which are scheduled cash earnings at surveyed companies
that employ five or more people, have been on a downtrend, showing a
rare increase of 0.1% in December 2010.

In inflation adjusted terms, the total average cash earnings fell
1.9%, showing the second consecutive monthly y/y drop, after -0.1% in
March.

The real average wages have recovered from the record drop of 5.2%
marked in June 2009.

Overtime hours worked in the manufacturing sector posted the second
straight y/y drop in April, down by 9.4%, after -0.8% in March and
posting the record growth of 57.3% in March 2010.

From the previous month, overtime hours worked in the manufacturing
sector dropped 8.3%% on a seasonally adjusted basis, posting the second
straight decline.

Until the March disaster, overtime hours had been recovering since
October 2009, led by the automobile and electronics sectors. This had
pushed up the level of overtime pay.

Total overtime hours worked for all industries fell 5.7% in April,
after -1.0% in March, showing the second y/y drop in a row. The 4.4%
gain in January 2010 was the first year-on-year rise in 18 months.

The number of regular workers rose 0.7% in April after +0.8% in
March, marking the 15th straight y/y rise. The gain in February 2010 was
the first y/y rise in 10 months since +0.3% in April 2009.

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

Bonuses and other special pay fell 15.8% y/y in April, posting the
first fall in four months, following +9.3% in March.

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

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