MNI 5 THINGS: Japan July Wage Growth Slows After June Surge

--Japan July Average Wages +1.5% Y/Y, 12th Straight Rise; June +3.3%

--Japan July Real Average Wages +0.4% Y/Y; June +2.5%

--Japan July Base Wages +1.0% Y/Y, 16th Straight Rise

--Japan July Overtime Pay +1.9% Y/Y, 9th Straight Rise

--Japan July Bonuses, Other Special Pay +2.4% Y/Y, June +6.3%

     TOKYO (MNI) - The average wage growth in Japan slowed in July on shorter

overtime working hours after total wages surged in June on early summer bonus

payments at some firms, 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

1.5% on year to Y376,338, posting the 12th straight year-on-year rise, compared

to the recent median growth rate of +0.9%. It followed +3.3% in June, +2.1% in

May and +0.6% in April.

     * 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 rose just 0.4% on year in July for the third

straight year-on-year rise after +2.5% in June. The recent weak trend was caused

by the rising cost of living. The total CPI minus imputed rents rose 1.1% on

year in July.

     * Base wages, the key to a steady recovery in cash earnings, rose 1.0% in

July from a year earlier, the 16th straight year-on-year rise after rising 1.1%

in the previous month.

     * Overtime pay rose 1.9% on year in July, the ninth straight y/y rise after

rising 3.55 in June.

     * Bonuses and other special pay gained 2.4% from a year before for the

third straight y/y rise, with the pace of increase decelerating from +6.3% in

June and +18.2% in May. This category tends to fluctuate widely.

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

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