While major Japanese firms concluded annual labour talks with the largest pay rises in about three decades, higher prices have demoralised consumers as the world’s third-largest economy faces uncertainty from a global slowdown and a new central bank chief.
Inflation-adjusted real wages, a gauge of households’ purchasing power, dropped by 2.6% in February from a year earlier, following a 4.1% fall in January that marked the fastest decline in nearly nine years.
Total cash earnings, or nominal wages, posted a 1.1% year-on-year gain in February, faster than a 0.8% growth in January.
Yet the nominal pay growth fell short of the 3.9% consumer inflation rate used to calculate pay in real terms, which includes fresh food but excludes owners’ equivalent rent, although the pace of inflation cooled from 5.1% in January, due to the effect of government subsidies to curb utility bills.
Overtime pay, a gauge of business activity, rose 1.7% year-on-year in February, after a revised 0.5% growth the previous month.
Special payments fell for a second month by 1.7% in February, after a revised 1.3% drop the previous month. The indicator tends to be volatile in months outside the twice-a-year bonus seasons of November to January and June to August.
The following table shows preliminary data for monthly incomes and number of workers in February:
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Payments (amount) (yr/yr % change)
Total cash earnings 271,851 yen ($2,072) +1.1
-Monthly wage 267,061 yen +1.2
-Regular pay 248,254 yen +1.1
-Overtime pay 18,807 yen +1.7
-Special payments 4,790 yen -1.7
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Number of workers (million) (yr/yr % change)
Overall 51.609 +1.8
-General employees 35.106 +0.8
-Part-time employees 16.503 +3.6
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The ministry defines “workers” as 1) those employed for more than one month at a company that employed more than five people, or 2) those employed on a daily basis or had less than a one-month contract but had worked more than 18 days during the two months before the survey was conducted, at a company that employs more than five people.
To view the full tables, see the labour ministry’s website at:
($1 = 131.2600 yen)
Source: Economy - investing.com
