— Japan Dec Average Base Wages Rev -0.3% Y/Y, 12th Drop In Row
— Japan Dec Overtime Pay Rev +1.7% Y/Y, 4th Rise In Row; Nov +2.2%
— Japan Dec Special Pay Rev +0.4% Y/Y, 1st Rise In 2 Mths; Nov -1.8%
— Japan 2011 Avg Wages Unrevised -0.2%, 1st Drop In 2 Yrs; 2010 +0.6%
TOKYO (MNI) – The total average monthly cash earnings per regular
employee in Japan rose a revised 0.1% on year to Y551,618 in December,
marking the first rise in seven months and reversing a preliminary 0.2%
drop, data from the Ministry of Health, Labor and Welfare released on
Friday showed.
But monthly wages still dropped from year-earlier levels in seven
of the 12 months last year, hit by the March earthquake disaster and the
yen’s rise to record highs amid slowing global demand,
As a result, total wages dipped an unrevised 0.2% to a monthly
average of Y316,792 in 2011, posting the first fall in two years after
+0.6% in 2010 and -3.8% in 2009.
In the past two decades, wage growth from the previous year was
evident through 1997, but employee earnings entered a sudden downtrend
in 1998, showing gains in only four of the 14 years through 2011.
In December, the long slump in base wages was confirmed in revised
data but a sharp upward revision to overtime pay and a rise in special
pay (bonuses and other irregular earnings) offset a downward revision to
base wages.
Average base wages — the key indicator of a recovery in employee
earnings — fell a revised 0.3% (preliminary -0.1%) on year in December,
posting the 12th straight y/y drop after falling 0.3% in November.
Special pay, which was the largest component of total wages in
December due to year-end bonus payments — rose a revised 0.4%
(initially -0.3%) y/y, posting the first y/y rise in two months after
-1.8% in November and +7.4% in October.
Overtime pay, a small portion of cash earnings, rose a revised 1.7%
(preliminary +0.3%) on year in December, showing gains for four months
in a row after +2.2% in November and +2.9% in October.
Total overtime hours worked for all industries were revised up
sharply to +1.8% on year from the preliminary reading of being flat in
December after being unchanged in November and rising 1.0% in October.
Total hours worked rose a revised 0.1% (initially +0.3%) on year in
December, marking the first y/y rise in four months after falling 0.2%
in November.
In 2011, regular employment rose an unrevised 0.7% from 2010,
marking the eight year of annual gains following +0.3% in the previous
year.
Cash earnings include overtime and bonuses. Regular employees are
workers on permanent payrolls as well as those with part-time status.
tokyo@marketnews.com
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