MNI: Japan Jan Wages Post 6th Straight Rise; Real Wages Slump

--Japan Jan Average Wages +0.7% Y/Y, 6th Straight Rise 

--Japan Jan Real Average Wages -0.9% Y/Y, 2nd Straight Drop

--Japan Jan Base Wages +0.2% Y/Y, 10th Straight Rise

--Japan Jan Overtime Pay Unchanged Y/Y, Dec +0.6%

--Japan Jan Special Pay +9.3% Y/Y, 6th Straight Rise

     TOKYO (MNI) - Preliminary average wage data from the Monthly Labour Survey

released by the Ministry of Health, Labour and Welfare on Friday.

     * Total monthly average cash earnings per regular employee in Japan rose

0.7% on year to Y271,640 in January, posting the sixth straight year-on-year

rise after +0.9% in December, but real wages remained depressed.

     * In real terms, average wages slumped 0.9% on year in January marking the

second straight year-on-year drop after falling 0.3 in December. Real wages last

posted a year-on-year rise (+0.1%) in December 2016. The weak trend was caused

by the recent increase in the cost of living, with the total CPI minus imputed

rents up 1.7% on year in January due to the recent surge in fresh vegetable

prices.

     * Base wages, the key to a recovery in cash earnings, rose 0.2% in January

from a year earlier, the 10th straight year-on-year rise after +0.6% in

December. Hourly base wages of regular employees working part time gained 2.7%

on year after +2.6% in the previous month while base wages for full-time workers

rose at a slower pace of 0.5% after rising at the same pace in December.

     * Overtime pay was unchanged on year in January after rising 0.6% in

December. Overtime working hours fell 2.0% for the first year-on-year drop in 13

months after rising 1.5% the previous month. Regular working hours fell 0.3% on

year, the first drop in three months after +0.4%.

     * Bonuses and other special pay rose 9.3% from a year before, marking the

sixth straight year-on-year rise after +1.0% in December.

     * Japanese policymakers have been urging firms to share more profits with

workers but firms are generally cautious about raising base wages amid

uncertainty over the outlook for global and domestic demand.

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

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