TOKYO, Dec 8 (Reuters) - Japan's real wages declined for
a 19th consecutive month in October, government data showed on
Friday, highlighting that cost-push pressures continue to stifle
consumers' purchasing power.
Financial markets worldwide pay close attention to these
wage trends as the Bank of Japan regards sustainable pay
increases as a prerequisite for dismantling its ultra-loose
monetary stimulus.
Inflation-adjusted real wages, a barometer of consumer
purchasing power, fell 2.3% in October from a year earlier,
after a revised 2.9% decline in September, data from the
Ministry of Health, Labour and Welfare showed.
The consumer inflation rate officials use, which includes
fresh food prices but excludes owner's equivalent rent,
re-accelerated to 3.9% after slowing for two months.
"Price increases have outpaced wage growth," a labour
ministry official said.
At the same time, nominal pay growth in October was 1.5%,
the highest since June, after a downward revision to 0.6% in
September. The results partly reflect an increase in special
payments, which went up 7.5% year-on-year in October after a
revised 8.6% drop in the previous month, the ministry official
said.
The indicator tends to be volatile in months outside the
twice-a-year bonus seasons of November and January and June to
August.
A sign of relief for households may be on the horizon. Core
inflation in Japan's capital, a leading indicator for nationwide
trends, rose in November but at a slower pace than the previous
month. The figure underscored the Bank of Japan's view that
cost-push inflation will gradually dissipate.
Meanwhile, Japan's largest union "Rengo" said last week it
will ask for a pay increase of at least 5% at next year's spring
wage negotiations to cushion the blow from rising living costs.
Regular or base salary in October rose by 1.4% year-on-year,
from a revised 1.0% increase in the previous month, the data
showed.
Overtime pay, a gauge of business activity, decreased in
October by 0.1% year-on-year, after a revised 0.5% drop in
September.
The table below shows preliminary data for monthly incomes
and number of workers in October:
----------------------------------------------------------------
Payments (amount) (yr/yr % change)
Total cash earnings 279,172 yen ($1,904.70) +1.5
-Monthly wage 272,291 yen +1.3
-Regular pay 252,825 yen +1.4
-Overtime pay 19,466 yen -0.1
-Special payments 6,881 yen +7.5
----------------------------------------------------------------
Number of workers (million) (yr/yr % change)
Overall 52.641 +1.9
-General employees 35.593 +1.2
-Part-time employees 17.048 +3.3
----------------------------------------------------------------
The labour ministry defines "workers" as 1) those employed for
more than one month at a company that employs 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: http://www.mhlw.go.jp/english/database/db-l/index.html
($1 = 146.5700 yen)
(Reporting by Satoshi Sugiyama; editing by Christina Fincher)
Stock Market News
Stocks mentioned in the article
Price
|
Change
|
5d. change
|
Capi.
| ||
---|---|---|---|---|---|
172.1 JPY | +0.32% | +1.12% | - | ||
1,046 JPY | +1.60% | +3.31% | 1.59B | ||
2,794 PTS | -0.33% | +2.50% | - | ||
- Stock Market
- Stock Market News
- Economy
- Japan's inflation-adjusted wages decline for 19th month in Oct