7 Apr 2015
Japan: Rising trend of growth of nominal aggregate wages - DB
FXStreet (Bali) - Mikihiro Matsuoka, Chief Economist at Deutsche Bank, notes that the latest month labor survey in Japan confirms a rising trend of growth of nominal aggregate wages.
Key Quotes
Monthly Labor Survey revealed a 0.5% YoY rise in total cash earnings (per person) and a 2.1% YoY rise in employment, resulting in a 2.6% rise in nominal aggregate wages, the product of these two indices.
"In order to dilute monthly disturbances, we calculated the YoY growth of the three-month moving average of the product of these two seasonally adjusted indices, which was 1.7% in December 2014, 2.1% in January 2015 and 2.5% in February. This confirms a rising trend of growth of nominal aggregate wages."
"While the nonscheduled hours worked (per person) fell a seasonally adjusted 1.9% MoM in February as a result of the decline in production and exports, we believe this is a temporary decline."
"The year-end bonus for 2014 (per person) rose 1.9% YoY, compared with a 2.7% rise in the summer of 2014. We maintain our view that nominal aggregate wages rises at annualized 2.0-2.5%."
Key Quotes
Monthly Labor Survey revealed a 0.5% YoY rise in total cash earnings (per person) and a 2.1% YoY rise in employment, resulting in a 2.6% rise in nominal aggregate wages, the product of these two indices.
"In order to dilute monthly disturbances, we calculated the YoY growth of the three-month moving average of the product of these two seasonally adjusted indices, which was 1.7% in December 2014, 2.1% in January 2015 and 2.5% in February. This confirms a rising trend of growth of nominal aggregate wages."
"While the nonscheduled hours worked (per person) fell a seasonally adjusted 1.9% MoM in February as a result of the decline in production and exports, we believe this is a temporary decline."
"The year-end bonus for 2014 (per person) rose 1.9% YoY, compared with a 2.7% rise in the summer of 2014. We maintain our view that nominal aggregate wages rises at annualized 2.0-2.5%."