Inflation Adjusted Wages Fell 2.8% in October

Wages for workers adjusted for inflation dropped 2.8 percent in October in Japan, marking the 16th consecutive month of decline, government data showed Tuesday.

Wages stood at 267,935 yen per worker, up 0.5 percent from a year earlier if the impact of consumer price hikes is excluded, the Ministry of Health, Labor and Welfare said in its monthly preliminary report on wages and overtime trends at businesses hiring five employees or more.

It was the eighth month in a row that nominal wages climbed, due to pay increases after spring labor negotiations and the strong labor market.

The growth in nominal wages, however, was outpaced by inflation spurred by the consumption tax hike in April and the falling value of the yen, which generally makes imported products more expensive.

Basic wages edged up 0.4 percent to 242,370 yen. While wages in this category increased 0.5 percent for full-time workers, they dropped 0.3 percent for part-timers.

Overtime payments inched up 0.4 percent to 19,673 yen, slower than 1.9 percent in the previous month as demand for extra hours stumbled. Non-recurring wages such as bonus payments grew 6 percent to 5,892 yen.

via Mainichi

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza