TOKYO (MNI) – The total nominal average monthly cash earnings per
regular employee in Japan fell 0.8% year-on-year to Y246,202 in June,
posting the first fall in two months, as bonuses and other special pay
fell 2.0%, the first fall in two months, following +60.7% in May, data
from the Ministry of Health, Labor and Welfare released on Tuesday
showed.
The June reading followed a 1.0% rise in May and -1.4% in April.
Overtime pay fell 0.5% y/y in June, showing falls for three months
in a row, following -2.3% in May and -1.9% in April.
Average “base wages” — the key indicator for a recovery — fell
0.1% on year, showing falls for six months in a row, but the pace of
decline slowed from -0.5% in May.
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 monthly y/y fall in June, down by 0.7% y/y, after -6.9% in May.
But compared to the previous month, overtime hours worked in the
manufacturing sector rose 6.7% on a seasonally adjusted basis, showing
the second monthly m/m gain, following +0.4% in May.
Total overtime hours worked for all industries showed no change on
year in June, improving from -2.1% in May, -3.9% in April and -1.0% in
March.
Meanwhile, the number of regular workers rose a revised 0.7% in
June, following +0.6% in May and +0.7% in April, 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
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