REPEAT: MNI: Japan Oct Wages Revised Down Sharply

--Japan Oct Average Wages Revised +0.2% Y/Y Vs Initial +0.6%

--Japan Oct Real Average Wages Revised -0.1% Y/Y Vs +0.2%

--Japan Oct Base Wages Revised +0.3% Y/Y Vs +0.7%

--Japan Oct Overtime Pay Revised -0.1% Y/Y Vs +0.2%

--Japan Oct Special Pay Revised +0.2% Y/Y Vs -0.5%

     TOKYO (MNI) - Revised 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

0.2% on year to Y267,433 in October, revised down sharply from the initial

reading of a 0.6% rise to Y268,392. It was still the third straight year-on-year

rise after +0.9% in September, but real wages continued to drop.

     * In real terms, average wages fell 0.1% on year, revised down from the

preliminary 0.2% rise. It was the fifth consecutive year-on-year decline after

sliding at the same pace in the previous four months, instead of the first y/y

rise in 10 months as reported earlier. 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.

     * In October, the decline in real wages was limited compared to the slight

nominal gain because fresh food prices slumped on year, pushing down the rate of

increase in the total CPI. The government uses the total CPI minus imputed rents

to calculate real wages. The price index rose only 0.3% on year in October

following a 0.9% increase in September.

     * Base wages, the key to a recovery in cash earnings, rose 0.3% in October

from a year earlier, the seventh straight year-on-year rise after +0.7% in

September. It was revised down from a preliminary 0.7% rise. Hourly base wages

of regular employees working part time gained 2.1% (revised down from +2.3%) on

year after +2.3% in the previous month while base wages for full-time workers

rose a modest 0.3% (revised from +0.5%) on year.

     * Overtime pay fell 0.1% on year in October, revised down from the initial

estimate of a 0.2% rise. It was the first year-on-year drop in four months after

rising 1.2% in September. Overtime working hours rose an unrevised 0.7% on year

for the 10th straight rise after +1.5% in September while regular working hours

gained 0.7% (also unrevised) on year, the first increase in five months after

falling 0.2% in the previous month.

     * Bonuses and other special pay rose 0.2% from a year before, revised up

from the 0.5% drop reported earlier. It was the third straight year-on-year rise

after +10.6% in September.

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

workers but firms remain 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