MNI DATA IMPACT: Japan Feb Wage Drop Widens; Real In Negative

--Japan Feb Average Wages -0.8% Y/Y, 2nd Straight Drop; Jan -0.6% 

--Japan Feb Real Average Wages -1.1% Y/Y; Jan -0.7% 

--Japan Feb Base Wages -0.1% Y/Y, 2nd Straight Drop 

--Japan Feb Overtime Pay -0.5% Y/Y, 3rd Straight Drop 

--Japan Feb Bonuses, Other Special Pay -34.2% Y/Y, Jan -1.4%

     TOKYO (MNI) - Average wages fell 0.8% on year in February, the second

straight year-on-year drop following a 0.6% decline in January and real wages

were also in negative territory, 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 fell

0.8% on year to Y264,435 in February, the second straight year-on-year drop

following a 0.6% fall in January.

     --Some sectors, such as 'eating out', are raising wages to ensure it

attracts the necessary employees, but others are generally cautious about

raising base wages amid uncertainty over the global and domestic economies.

     --In real terms, average wages fell 1.1% on year in February, the second

straight drop following -0.7% in January. The total CPI minus imputed rents rose

0.2% on year in February, unchanged from 0.2% in January.

     --Base wages, the key to a steady recovery in cash earnings, fell 0.1% in

February from a year earlier, the second straight year-on-year drop after

falling 0.6% in the previous month. Overtime pay fell 0.5% on year in February,

the third straight y/y drop after falling 1.1% in January.

     --Bonuses and other special pay fell 34.2% from a year ago, the second

straight drop following a fall of 1.4% in January. 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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