MNI 5 THINGS: Japan Aug Wage Growth Slows; Real Turns Negative

--Japan Aug Average Wages +0.9% Y/Y, 13th Straight Rise; Aug 1.6% 

--Japan Aug Real Average Wages -0.6% Y/Y; Aug +0.5% 

--Japan Aug Base Wages +1.4% Y/Y, 17th Straight Rise 

--Japan Aug Overtime Pay +1.0% Y/Y, 10th Straight Rise 

--Japan Aug Bonuses, Other Special Pay -7.4% Y/Y, Aug +2.8%

     TOKYO (MNI) - Average wage growth in Japan slowed in August on shorter

overtime working hours and the end of the June/July bonus payments, preliminary

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

     The key points from the Monthly Labour Survey:

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

0.9% on year to Y276,366 in August, posting the 13th straight year-on-year rise

following a 1.6% gain in July and a 3.3% gain in June.

     --The ministry left its long-held assessment unchanged, saying wages have

been increasing "moderately." Companies are generally cautious about raising

base wages amid uncertainty over global and domestic economic growth. Some

sectors are raising wages to help alleviate labor shortages.

     --In real terms, average wages fell 0.6% on year in August for the first

year-on-year drop in four months. The recent weak trend comes on the back of the

rising cost of living. The total CPI minus imputed rents rose 1.5% on year in

August, accelerating from 1.1% in July.

     --Base wages, the key to a steady recovery in cash earnings, rose 1.4% in

August from a year earlier, the 17th straight year-on-year rise after rising

1.0% in the previous month. Overtime pay rose 1.0% on year in August, the 10th

straight y/y rise after rising 1.6% in July. 

     --Bonuses and other special pay fell 7.4% from a year ago, the first drop

in fourth months, decelerating from +2.8% in July and +6.3% in June. This

category is seen as a volatile data series, fluctuating wildly.

--MNI Tokyo Bureau; tel: +81 90-2175-0040; email: hiroshi.inoue@marketnews.com

--MNI London Bureau; tel: +44 203-586-2225; email: les.commons@marketnews.com

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