— Japan June Avg Wages Revised -0.7% Y/Y Vs -0.8%; May +1.0%
— Japan June Avg Base Wages Rev -0.3% Y/Y Vs -0.1%; May -0.5%
— Japan Average Base Wages Post 6th Straight Y/Y Drop
— Japan June Overtime Pay Revised -0.1% Y/Y Vs -0.5%; May -2.3%
— Japan June Special Pay Revised -1.3% Y/Y Vs -2.0%; May +60.7%

TOKYO (MNI) – The total average monthly cash earnings per regular
employee in Japan fell 0.7% year-on-year to Y436,144 in June, revised up
from a preliminary 0.8% fall, as upward revisions to overtime and
special pay offset a downward revision to base wages, data from the
Ministry of Health, Labor and Welfare released on Wednesday showed.

The June reading followed +1.0% in May and -1.4% in April.

Overtime pay fell only 0.1% y/y in June, revised up from a
preliminary 0.5% drop but it still marked the third straight y/y fall
after -2.3% in May and -1.9% in April.

Factories have resumed operations on a continued recovery in supply
chains for cars and electronics that were ravaged by the March
earthquake disaster.

Meanwhile, bonuses and other special pay fell a revised 1.3% y/y
(preliminary -2.0%) after rising 60.7% in May.

Average “base wages” — the key indicator for a recovery — fell
0.3% on year in June, revised down from an initial 0.1% drop. It was the
sixth consecutive y/y fall but the pace of decline decelerated from
-0.5% in May and -0.7% in April.

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

Overtime hours worked in the manufacturing sector posted the fourth
straight y/y fall in June, down by an unrevised 0.7% y/y after -6.9% in
May.

But compared to the previous month, overtime hours worked in the
manufacturing sector rose an unrevised 6.7% on a seasonally adjusted
basis, showing the second m/m gain following +0.4% in May.

Total overtime hours worked for all industries were unchanged from
a year earlier in June after three months of decline.

Meanwhile, the number of regular workers rose a revised 0.8% y/y in
June (preliminary +0.7%), following +0.6% in May and marking the 17th
straight y/y rise since February 2010.

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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