— Japan Nov Avg Wages Revised Up From Prelim -0.2%; Oct +0.5%
— Japan Nov Avg Base Wages Revised -0.1% Y/Y Vs Prelim Unch
— Japan Average Base Wages No Growth Since +0.1% In April 2008
— Japan Nov Real Avg Wages Revised Flat Y/Y Vs Prelim -0.5%
— Japan Nov Special Pay Revised -2.3% Y/Y Vs Prelim -11.2%
— Japan Nov Regular Jobs Revised +0.7% Y/Y, 10th Rise In Row

TOKYO (MNI) – The total nominal average monthly cash earnings per
regular employee in Japan rose a revised 0.2% (preliminary -0.2%)
year-on-year to Y278,914 in November, posting the ninth straight y/y
gain, data from the Ministry of Health, Labor and Welfare released on
Tuesday showed.

In the final report for November, a slight downward revision to
“base” salaries was more than offset by an upward revision to a drop in
special pay including bonuses as well as the growth in overtime pay.

The year-on-year growth in total cash earnings decelerated from
+0.5% in October. 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 fell a revised 2.3% (preliminary
-11.2%) in October from a year before, posting the first y/y drop in
three months.

Meanwhile, overtime pay rose for the 11th month in a row, pushing
up overall compensation, although the “base wages” — the key indicator
for a recovery — fell 0.1% on year, revised downward from the initial
reading of being unchanged and following two months of being flat.

Average base wages, or scheduled cash earnings at surveyed
companies that employ five or more people, showed no growth since +0.1%
in April 2008.

Overtime pay in November rose a revised 6.4% (preliminary +6.0%)
year-on-year, slightly slower than the 6.5% gain in October. January’s
2.4% gain in overtime pay was the first y/y rise in 18 months.

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 cash earnings showed
a no change from a year before in the revised data (preliminary -0.5%)
in November, after marking the 10th straight y/y rise in October, up
0.2%.

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 12th
straight year-on-year rise in November, up by a revised 13.8%
(preliminary +12.2%) after rising 15.3% in October 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 rose a revised 1.8% (preliminary +0.4%) on a seasonally adjusted
basis, showing the first gain in three months.

Overtime hours have been recovering since October 2009, led by the
automobile and electronics sectors. This has pushed up the level of
overtime pay.

Total overtime hours worked for all industries rose a revised 6.1%
(preliminary +4.0%) y/y in November, following a 6.2% rise in October
and a record gain of +14.5% in March 2010. January’s +4.4% was the first
year-on-year rise 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 recovery in the labor market.

The number of regular workers rose a revised 0.7% (preliminary
+0.6%) from a year earlier, marking the 10th straight y/y rise after
rising 0.7% in October. The gain in February 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.

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

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