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MNI DATA BRIEF: Japan May Wages Up; Real Pay Positive

Base wages, the key to a ready recovery in cash earnings, rose 0.8% y/y in May

(MNI) Tokyo
TOKYO (MNI)

Average wages in Japan rose 0.8% y/y in May, recording a fifth straight increase.

Real wages remained in positive territory, up 2.0% in May, preliminary data released on Tuesday by the Ministry of Health, Labour and Welfare showed.

Total monthly average cash earnings per regular employees rose 1.9% y/y to JPY273,777 (USD2,466) in May.

In real terms, average wages rose 2.0% y/y in May, the fourth straight rise following a 1.9% rise in April. Total CPI minus impute rents fell 0.1% y/y in May after falling 0.5% in April.

Overtime pay surged 20.7% y/y in May, sharply up from +5.4% previously and due to the base effect of comparing the rate with the previous year, when the overtime pay fell sharply amid coronavirus. The rise was mainly due to an increase of overtime working hours (+27.6% y/y in May vs. +12.2% in April) amid recovering economic activity in manufacturing.

Bonuses and other special pay rose 1.0% y/y in May, for the fourth straight rise following April's 8.7% rise.

MNI Tokyo Bureau | +81 90-2175-0040 | hiroshi.inoue@marketnews.com
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MNI Tokyo Bureau | +81 90-2175-0040 | hiroshi.inoue@marketnews.com
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