MNI: Japan Apr Wage Growth Slows To Trend, Real Wages Flat

--Japan Apr Average Wages +0.8% Y/Y, 9th Straight Rise

--Japan Apr Real Average Wages Unchanged Y/Y; Mar +0.7%

--Japan Apr Base Wages +1.2% Y/Y, 13th Straight Rise

--Japan Apr Overtime Pay +1.9% Y/Y, 6th Straight Rise

--Japan Apr Special Pay -9.8% Y/Y, 1st Drop in 9 Months 

     TOKYO (MNI) - The average wage growth in Japan slowed back to its trend

growth under 1% in April after a temporary jump in March, with real wages

slipping back to flat in the face of the rising cost of living, preliminary data

released Wednesday 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 rose

0.8% on year to Y277,272 in April, posting the ninth straight year-on-year rise

and sliding back to the recent median growth rate of +0.7%. It followed a 2.0%

jump in March caused by temporary factors, such as lump-sum allowances paid by

some firms and temporary bonuses based on high earnings in fiscal 2017 that

ended in March.

     * The ministry left its long-held assessment unchanged, saying wages have

been increasing "moderately." Companies are generally cautious about raising

base wages amid uncertainty over global and domestic economic growth. Some

sectors are raising wages to help alleviate serious labor shortages.

     * In real terms, average wages were unchanged on year in April after

marking the first year-on-year rise in four months in March, up 0.7%. The recent

weak trend was caused by the rising cost of living. The total CPI minus imputed

rents rose 0.8% on year in April, with the pace of increase decelerating from a

peak of +1.8% in February as fresh food prices eased after a surge late last

year.

     * Base wages, the key to a steady recovery in cash earnings, rose 1.2 % in

April from a year earlier, the 13th straight year-on-year rise after rising at

the same pace in March, which was the fastest pace of increase since +1.3% in

July 1997. Hourly base wages of regular employees working part time gained 1.4%

on year after +2.0% in the previous month while base wages for full-time workers

rose at a slower pace of 0.9% after rising 1.3% in March.

     * Overtime pay rose 1.9% on year in April, the sixth straight y/y rise

after rising 2.2% in March. But overtime working hours continued to fall, down

0.9% for the fourth straight year-on-year drop after falling 0.9% the previous

month. Regular working hours fell 1.0% on year, the third consecutive y/y fall

after -1.5% in March.

     * Bonuses and other special pay decreased 9.8% from a year before, marking

the first year-on-year drop in nine months after +13.7% in March. This category

tends to fluctuate widely.

--MNI Tokyo Bureau; tel: +81 90-4670-5309; email: max.sato@marketnews.com

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