Japan's wages up 1.5% in June, 4th straight month of rise

Japan's wages at companies with at least five employees rose 1.5 percent in June from a year earlier to 437,677 yen for the fourth straight month of increase, as employers had staff work more hours instead of adding to payrolls, the Health, Labor and Welfare Ministry said in a report on Monday.

Overtime pay climbed 11.6 percent to 17,587 yen as large corporations begin to show sign of a turnaround this earnings season, while summer bonuses and other special payments rose 3.3 percent to 173,851, ministry said.

"Recent increases in overtime pay reflect the economic recovery, " Maruyama, a senior economist at Itochu Corp., said before Monday ' s report. "But companies are holding off on meaningfully increasing personnel costs until the economic outlook becomes clearer, he said.

Scheduled pay, including basic salaries, shed 0.2 percent to 246,239 yen, marking for the 23rd successive month of fall as firms continue to restrict scheduled pay amid economic uncertainty.

Actual overtime worked in the recording month increased from 9. 2 percent to 9.6 hours and in the manufacturing sector particularly, an important economic indicator, overtime leapt 43.7 percent to 13.5 hours, the ministry said.

Source: Xinhua