Japan Aug Wages Rebound on Bonuses, Overtime; Slow Rise Intact

--Japan Aug Avg Wages +0.9% Y/Y, 1st Rise in 2 Months

--Japan Aug Real Avg Wages +0.1% Y/Y, 1st Rise in 8 Months

--Japan Aug Base Wages +0.4% Y/Y, 5th Straight Rise

--Japan Aug Overtime Pay +1.5% Y/Y, 2nd Straight Rise

--Japan Aug Special Pay +6.1% Y/Y, 1st Rise in 2 Months

     TOKYO (MNI) - Preliminary average wage data from the Monthly Labour Survey

released by the Ministry of Health, Labour and Welfare on Friday.

     * Total monthly average cash earnings per regular employee in Japan rose

0.9% on year to Y274,490 in August, posting the first year-on-year rise in two

months after falling 0.6% in July, led by a rise in summer bonuses after a sharp

drop in July and a large gain in overtime pay.

     * In real terms, average wages edged up 0.1% on year, the first rise in

eight months after falling 1.1% in the previous month. The weak trend was caused

by the recent rise in the cost of living, with the total CPI minus imputed rents

up 0.8% on year in August, amid slow base wage hikes.

     * Base wages, the key to a recovery in cash earnings, rose 0.4% in August

from a year earlier, the fifth consecutive year-on-year rise, but the pace of

increase slowed from the recent high of +0.7% in May. Hourly base wages of

regular employees working part time gained 2.0% on year after +2.5% in the

previous month while base wages for full-time workers rose a modest 0.4% on year

after rising at the same pace in the previous month.

     * Overtime pay rose 1.5% on year in August in reaction to the sharp 1.9%

drop a year before. it was the second straight year-on-year increase after

rising 0.2% in July. Overtime working hours rose 0.6% on year for the eighth

straight rise after +0.6% in July while regular working hours fell 0.9% on year,

the second straight year-on-year drop after falling 0.6% in the previous month.

     * Bonuses and other special pay rose 6.1% from a year before in August

after falling 3.1% in July and rising 0.4% in June. In final figures, summer

bonuses, which are paid between June and August, are expected to show a

year-on-year drop.

     * Japanese policymakers have been urging firms to share more profits with

workers but firms remain cautious about raising base wages amid uncertainty over

the outlook for global and domestic demand.

--MNI Tokyo Bureau; tel: +81 90-4670-5309; email: max.sato@marketnews.com

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