— Japan Aug Average Base Wages +0.1% Y/Y, 1st Rise In 5 Months
— Japan Aug Overtime Pay +2.7% Y/Y, 11th Straight Gain
— Japan Aug Mfg Overtime Hours Worked -2.7% Y/Y, 1st Drop in 15 months
— Japan Aug Bonuses, Other Special Pay +1.1%, 1st Rise In 4 Months

TOKYO (MNI) – The total average monthly cash earnings per regular
employee in Japan posted the first rise in four months in August, up
0.2% on year at Y274,359, after falling 1.6% in July, preliminary data
from the Ministry of Health, Labour and Welfare released Tuesday showed.

But the recovery in wage growth remains slow as base wages posted
only a slight gain and overtime hours worked marked a second straight
year-on-year drop, with weakness seen in the manufacturing sector.

Average “base wages” — the key indicator for a recovery in
employee earnings — were up 0.1% y/y in August, posting the first rise
in five months, after falling 0.2% in July.

Overtime pay posted an 11th straight gain, up 2.7% on year in
August after +1.1% in July, but it is because there was a sharp 1.7%
drop in August 2011 and the pace of increase is much slower than +5.1%
in June and +6.9% in May this year.

Bonuses and other special pay rose 1.1%, showing the first gain in
four months after -5.1% in July.

Overtime hours worked in the manufacturing sector fell 2.7% on year
in August, posting the first fall in 15 months, after +0.8% in July,
+6.1% in June and +12.8% in May.

Compared to the previous month, overtime hours worked at
manufacturers fell 4.7% on a seasonally adjusted basis, showing the
second straight drop after -4.4% in July.

Total overtime hours worked for all industries fell 0.9% on year in
August, posting the second consecutive drop, after -0.8% in July.

Meanwhile, total hours worked slipped 0.9% y/y in August, marking
the first drop in two months, after no change in July.

The number of regular workers rose 0.7% y/y in August after +0.6%
in July, maintaining year-over-year growth for over six years since
March 2006.

Regular employees are workers on permanent payrolls as well as
those with part-time status.

tokyo@marketnews.com
** MNI Tokyo Newsroom: 81-3-6860-4821 **

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