(RTTNews) - Japan’s total cash earnings of employees in industries decreased for the 16th consecutive month in September, data from the Ministry of Health, Labor and Welfare showed on Monday.

Total cash earnings in establishments with five or more employees dropped 1.6% year-on-year to JPY 266,364 in September, compared to the 2.7% fall recorded in the previous month. A year ago, wages were down 0.5%. The month of June witnessed the biggest fall of 7% during the period.

The scheduled cash earnings declined 1.1% on an annual basis to JPY 245,651 in September, after falling 1.2% in August. At the same time, non-scheduled cash earnings dropped 12.5% to JPY 16,242.

The contractual cash earnings fell 1.9%, compared to the 2% decline in the previous month. Meanwhile, special cash earnings rose 17.4% year-on-year to JPY 4,471.

“Weakness in winter bonus payments should again depress special earnings, leading to renewed deceleration in worker income in the months ahead,” BNP Paribas economist Azusa Kato said in a note. “Judging from the fundamental weakness in employment/income conditions, the current upturn in consumer spending is clearly the product of fiscal stimulus, coupled with good weather and a new string of holidays.” The economist expects consumption to revert back to being lackluster once the stimulus starts to fade.

Overtime hours worked dropped 14.1% year-on-year in September. The number of regular employees dropped 0.1% year-on-year, with full time employees falling 0.1%, while the number for part-time employees rose 1.5%.

For comments and feedback: contact editorial@rttnews.com

Copyright(c) 2009 RTTNews.com, Inc. All Rights Reserved

Posted in Categories: Economy, Japan, Releases.

Subscribe by RSS Subscribe by Email