— Japan Sep Avg Base Wages Revised -0.4% Y/Y Vs Flat; Aug -0.5%
— Japan Sep Overtime Pay Revised +0.1% Y/Y Vs -0.8%; Aug +2.7%

TOKYO (MNI) – The total average monthly cash earnings per regular
employee in Japan fell 0.5% from a year earlier in September, revised
down from being unchanged in the preliminary reading, hit by the global
economic slowdown, data from the Ministry of Health, Labour and Welfare
released Friday showed.

It was the first year-on-year drop after being flat in August and
falling 1.6% in July.

Both base wages and one-off pay (including bonuses) were revised
down, offsetting an upward revision to overtime pay.

Factory operations have been reduced by slumping exports and slower
domestic demand. Automobile output has also been hit by the
Sino-Japanese territorial dispute over small islands in the East China

Average “base wages” — the key indicator for a recovery in
employee earnings — fell 0.4% on year (revised from being were flat) in
September, marking the fourth straight y/y drop after -0.5% in August.

Bonuses and other special pay rose only 1.6% on year (revised from
+7.0%). It was a second straight y/y rise after +5.9% in August.

Overtime pay posted the 12th straight year-on-year gain in
September, revised up from -0.8% and following +2.7% in August.

This reflects an upward revision to total overtime hours worked for
all industries, which fell a revised 2.0% on year, compared with -3.0%
in the initial reading.

Overtime hours worked in the manufacturing sector posted a sharp
4.2% fall on year (unrevised) in September, posting the second
consecutive decline after -1.3% in August.

Compared to the previous month, overtime hours worked at
manufacturers fell 2.4% (also unrevised) on a seasonally adjusted basis,
showing the third straight m/m drop after -3.4% in August.

These figures reflect depressed industrial production, which fell
4.1% in September for a third straight month-on-month drop and tumbled
8.1% for a fourth consecutive year-on-year decline.

Meanwhile, total hours worked fell a revised 1.5% y/y (revised from
-1.4%) in September, posting the second consecutive fall after -0.9% in

The number of regular workers rose an unrevised 0.6% y/y in
September after +0.7% in August, 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.

–email: msato@mni-news.com

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