By Max Sato
(MaceNews) – Average wages in Japan remained depressed in September as the coronavirus has triggered layoffs and bankruptcies, while base wages, the key indicator for overall cash earnings, showed modest gains, data released Friday 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 fell 0.9% on year, posting the 6th straight year-on-year decline, compared to the recent bottom of the 2.3% slump in May and following a decline of 1.3% in August.
* Companies are now even more cautious about raising base wages amid the global pandemic, which is making the global and domestic economic growth outlook more uncertain. Before the coronavirus caused lockdowns and business shutdowns, some sectors had to raise wages to help alleviate serious labor shortages.
* In real terms, average wages slipped 1.1% for the seventh straight y/y drop after declining 1.4% in August.
* Base wages edged up 0.2% on year in September after posting a rare drop (-0.3%) the previous month. The key indicator for overall wages has been on a modest uptrend.
* Overtime pay slumped 12.0% on year, the 13th straight y/y decrease after falling 13.5% in August. Bonuses and other special pay fell 8.9% from a year before, marking the fifth straight year-on-year decline after slipping 1.1% the previous month. This category tends to fluctuate widely.