(Reuters) - Japanese wage earners' total cash earnings fell in January for the first time in three months, data showed on Tuesday, in a sign the government may be struggling to convince companies to pay higher salaries.
The 0.2 percent decline in total cash earnings in the year to January followed a 0.5 percent annual rise in December and could temper some policymakers' optimism that Japan can convincingly escape deflation.
The Bank of Japan considers wage growth crucial to meet its 2 percent inflation target in roughly two years, which most economists believe is too ambitious.
Prime Minister Shinzo Abe's government has publicly lobbied companies to raise wages and help boost domestic demand, but the decline in January shows firms are reluctant to heed the call.
Overtime pay, a barometer of strength in corporate activity, rose an annual 4.3 percent in January, slower than a 5.0 percent increase in the year to December, labor ministry data showed.
Regular pay rose an annual 0.1 percent, up for the first time in almost two years in a tentative sign that at least some companies are willing to pay more.
Labor unions are currently negotiating with companies to increase regular pay, so many economists and policymakers are focused on whether large companies will agree to union demands and whether that will spread to smaller firms.
reuters.com
The 0.2 percent decline in total cash earnings in the year to January followed a 0.5 percent annual rise in December and could temper some policymakers' optimism that Japan can convincingly escape deflation.
The Bank of Japan considers wage growth crucial to meet its 2 percent inflation target in roughly two years, which most economists believe is too ambitious.
Prime Minister Shinzo Abe's government has publicly lobbied companies to raise wages and help boost domestic demand, but the decline in January shows firms are reluctant to heed the call.
Overtime pay, a barometer of strength in corporate activity, rose an annual 4.3 percent in January, slower than a 5.0 percent increase in the year to December, labor ministry data showed.
Regular pay rose an annual 0.1 percent, up for the first time in almost two years in a tentative sign that at least some companies are willing to pay more.
Labor unions are currently negotiating with companies to increase regular pay, so many economists and policymakers are focused on whether large companies will agree to union demands and whether that will spread to smaller firms.
reuters.com
No comments:
Post a Comment