MNI DATA IMPACT: Japan Nov Wages Drop; Real Pay In Negative

--Japan Nov Average Wages -0.2% Y/Y, 1st Drop in 3 Months; Oct 0.0% 

--Japan Nov Real Average Wages -0.9% Y/Y; 2nd Straight Drop; Oct -0.4% 

--Japan Nov Base Wages +0.2% Y/Y, 5th Straight Rise; Oct +0.2% 

--Japan Nov Overtime Pay -1.9% Y/Y, Oct -0.1% 

--Japan Nov Bonuses, Other Special Pay -3.9% Y/Y, Oct -8.5%

     TOKYO (MNI) - Average Japanese wages fell year-on-year in November for the

first drop in two months after being unchanged in October, while real wages

remained in negative territory, according to preliminary data released Wednesday

by the Ministry of Health, Labour and Welfare.

     Here are the key points from the Monthly Labour Survey:

     --Total monthly average cash earnings per regular employee fell 0.2%

year-on-year to Y284,652 in November, following 0.0% in October and +0.5% in

September.

     --In real terms, average wages fell 0.9% year-on-year in November, the

second straight drop following a 0.4% fall in October. Total CPI minus impute

rents rose 0.6% year-on-year in November, accelerating from +0.3% in October.

     --Base wages, the key to a steady recovery in cash earnings, rose 0.2% in

November from a year earlier, the fifth straight rise after rising 0.2% the

previous month.

     --Overtime pay fell 1.9% from a year earlier in November following -0.1% in

October. Bonuses and other special pay fell 3.9% year-on-year in November, for

the second straight drop following -8.3% in October.

     --The government left its assessment unchanged from the previous month,

saying that wages are showing a moderate increase.

     --The Bank of Japan maintained its assessment that the employment and

income situation continued to steadily improve. There is concern, however, among

BOJ officials that consumers' income continued to weaken on the back of the

government's work style reforms to improve labour productivity through

innovation.

     --The work style reform is increasing the drop in overtime working hours,

which in turn is lowering overtime pay and impeding base wage hikes. 

--MNI Tokyo Bureau; tel: +81 90-2175-0040; email: hiroshi.inoue@marketnews.com

--MNI Sydney Bureau; +61 405322399; email: lachlan.colquhoun.ext@marketnews.com

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