— Japan Oct Avg Base Wages -0.1% Y/Y, 10th Drop In Row; Sep -0.3%
— Japan Oct Avg Overtime Pay +1.8% Y/Y, 2nd Rise In Row: Sep +0.1%
— Japan Oct Avg Special Pay +5.1% Y/Y, 1st Rise In 3 months; Sep -6.5%
— Japan Oct Overtime Hours Worked Unchanged Y/Y Vs Sep +1.0%

TOKYO (MNI) – The total average monthly cash earnings per regular
employee in Japan rose 0.1% on year at Y268,943 in October, posting the
first y/y gain in five months, data from the Ministry of Health, Labor
and Welfare released on Tuesday showed.

The October wages were supported by rises in overtime pay as well
as bonuses and other special pay, which more than offset a fall in
“base wages” — the largest sub-component of wages.

Overtime pay rose 1.8% on year in October, showing the second
consecutive monthly gain, after +0.1% in September and -1.6% in August.

Bonuses and other special pay rose 5.1% y/y in October, posting the
first gain in three months, following -6.5% in September, -0.1% in
August and +0.1% in July.

Average “base wages” — the key indicator for a recovery — fell
0.1% in October, posting falls for 10 months in a row, following -0.3%
in September and -0.2% in August.

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 rose 3.6% y/y in
October, posting the second straight monthly gain, after showing +2.1%
in September, -0.7% in August and +0.7% in July.

Compared to the previous month, overtime hours worked at
manufacturers rose 0.3% on a seasonally adjusted basis, showing the
first m/m rise in three months, following -0.7% in September and -1.5%
in August.

Total overtime hours worked for all industries were unchanged on
year in October, after showing +1.0% in September, -2.1% in August and
-1.0% in July.

Total hours worked were also unchanged on year in October, after no
change in September and +0.4% in August.

The number of regular workers rose 0.4% y/y in October, after +0.6%
in September, marking the 21st 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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