— Japan Oct Average Wages +0.2% Y/Y Vs Sep -0.5%
— Japan Oct Base Wages +0.5% Y/Y, 1st Rise In 7 Months
— Japan Oct Overtime Pay -2.3% Y/Y, 1st Fall In 14 months
— Japan Oct Special Pay +2.2% Y/Y, 3rd Straight Rise

TOKYO (MNI) – The total average monthly cash earnings per regular employee
in Japan stood at Y268,451, rising 0.2% on year in October and posting the first
rise in six months after -0.5% in September, preliminary data from the Ministry
of Health, Labour and Welfare released Tuesday showed.

But the year-on-year increase was due to two more working days in October
this year compared to the same month last year, and thus this does not show any
improvement in wages, a ministry official said.

In October, a rise in base wages and a continued gain in one-off earnings
more than offset a rare drop in overtime pay.

Average “base wages” — the key indicator for a recovery in employee
earnings — rose 0.5% y/y in October, posting the first gain in seven months
after -0.4% in September.

Bonuses and other special pay rose 2.2% y/y, posting gains for three months
in a row after +1.6% in September.

Overtime pay posted the first y/y drop in 14 months, down 2.3%, after +0.1%
in September and +2.7% in August, as weak exports are affecting domestic demand
and also because it marked a sharp 2.8% rise in October 2011.

The latest figure reflected a fall in total overtime hours worked for all
industries, which fell 4.0% on year in September, after -2.0% in September and
+0.1% in August.

Overtime hours worked in the manufacturing sector slumped 6.8% on year in
October, posting the third consecutive monthly decline after -4.2% in September
and -1.3% in August.

The global slowdown has prompted firms to reduce factory operations as seen
in a 4.3% drop in industrial production in October, the fifth straight
year-on-year decline after -8.1% in September.

Compared to the previous month, overtime hours worked at manufacturers fell
1.7% on a seasonally adjusted basis, the fourth straight drop, but the pace of
decrease decelerated from -2.4% in September and -3.4% in August.

Meanwhile, total hours worked rose 1.1% y/y in October, posting the first
rise in five months after -1.5% in September.

The number of regular workers rose 0.7% y/y in October after +0.6% in
September, maintaining year-over-year growth for over six years since March
2006.

Regular employees are workers on permanent payrolls as well as those with
part-time status.

–MNI Tokyo Bureau; tel: +81 90-4818-1387; email: skodama@mni-news.com

[TOPICS: MAJDS$,M$A$$$,M$J$$$]