MNI BRIEF: Japan Nov Real Wages Post 4th Straight Drop
MNI (TOKYO) - Inflation-adjusted real wages, a barometer of household purchasing power, posted their fourth straight drop in November, down 0.3% vs. -0.4% in October, preliminary data released by the Ministry of Health, Labour and Welfare on Thursday showed.
Total CPI minus imputed rents rose 3.4% y/y in November, accelerating from 2.6% in October, while contractual cash earnings rose 2.6% y/y in November after rising 2.3% in October. Total cash earnings, or nominal wages, posted a 3.0% year-on-year gain, accelerating from 2.2% in October.
Scheduled earnings rose 2.7% in November for the highest level since October 1992, accelerating from 2.5% in October.
Overtime pay rose 1.6% y/y in November after rising 0.7% in October and bonuses and other special pay rose 7.9% y/y following October's 2.2% fall.
The BOJ and private economists' closely watched scheduled earnings rose 3.0% in November vs. 3.0% in October, keeping the highest level since October 2016 and favorable data for BOJ officials.
Bank of Japan officials expect real wages to turn positive gradually as businesses raise wages to ensure necessary workers amid continued labour shortages.