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MNI DATA IMPACT: Japan July Wages Up; Real Pay Turns Positive

(MNI) Tokyo
TOKYO (MNI)

Average wages rose 0.4% y/y in July, recording the seventh straight gain following an upward revised +0.2% in June, and real wages turned positive, up 0.7% in July, preliminary data released on Tuesday by the Ministry of Health, Labour and Welfare showed.

Base wages, seen as key for recovery in cash earnings, rose 0.4% y/y in July, but revised down slightly to +0.2% in June.

Total monthly average cash earnings per regular employee rose 1.0% y/y to JPY372,757 in July, for the first rise in two months. In real terms, average wages rose 0.7% y/y in July. Total CPI minus imputed rents rose 0.2% y/y in July.

Overtime pay rose 12.2% y/y in July but slowed from a slightly downward revised +18.0% jump in June on the base effect. Bonuses and other special pay rose 0.8% y/y in July.

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

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