— Japan Average Wage Posts 8th Y/Y Rise In Row; Sep +0.9%
— Japan Oct Avg Base Wage Revised Unch Y/Y Vs Prelim +0.1%
— Japan Average Base Wage No Growth Since +0.1% In April 2008
— Japan Oct Real Avg Wage Revised +0.2% Y/Y Vs +0.4%; Sep +1.5%
— Japan Real Average Wage Posts 10th Straight Y/Y Rise
— Japan Oct Special Pay Revised +2.9% Y/Y Vs +5.2%; Sep +13.6%
— Japan Oct Regular Jobs Unrevised +0.7% Y/Y, 9th Rise In Row
TOKYO (MNI) – The total nominal average monthly cash earnings per
regular employee in Japan rose a revised 0.5% (preliminary +0.6%)
year-on-year to Y268,627 in October, posting the ninth straight y/y
gain, data from the Ministry of Health, Labor and Welfare released on
Friday showed.
In the final report for October, a slight upward revision to
overtime pay was more than offset by a downward revision to bonuses and
other special pay as well as “base” salaries.
The year-on-year growth in total cash earnings decelerated from
+0.9% in September. 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 rose a revised 2.9% (preliminary
+5.2%) in October from a year before, posting the second straight y/y
rise but slowing from +13.6% in September.
Meanwhile, overtime pay rose for the 10th month in a row, pushing
up overall compensation, although the “base wage” — the key indicator
for a recovery — still showed no growth on year, revised downward from
a preliminary 0.1% gain, which would have been the first y/y rise in 30
months since +0.1% in April 2008.
Overtime pay in October rose a revised 6.5% (preliminary +6.4%)
year-on-year, slower than the 10.1% gain in September. 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.
Average “base” salaries, or scheduled cash earnings at surveyed
companies that employ five or more people, were revised down to be
unchanged y/y from a preliminary +0.1% in October after no change in
September and -0.2% in August.
In inflation adjusted terms, the total average wage rose a revised
0.2% y/y (preliminary +0.4%) in October, following the 1.5% gain
September.
This was the 10th straight y/y gain, with real wages improving
gradually from the record drop of 5.2% posted in June 2009.
Overtime hours worked in the manufacturing sector posted the 11th
straight year-on-year rise in October, up by a revised 15.3%
(preliminary +13.7%) after surging 22.1% in September 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 fell a revised 1.8% (preliminary -3.1%) on a seasonally adjusted
basis, showing the second straight m/m fall after +1.0% in August.
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 6.2%
(preliminary +5.2%) y/y in October, following a 7.6% rise in September
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 an unrevised 0.7% from a year
earlier, marking the ninth straight y/y rise after rising 0.6% in
September. The gain in February was the first y/y rise in 10 months
since +0.3% in April 2009.
The 0.7% y/y increase in October was the largest gain since +0.9%
in January 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 **
[TOPICS: M$J$$$,MAJDS$,M$A$$$,MT$$$$]
