Wages fall record 7.1% in June in Japan

• Source: Xinhua
• [16:58 August 03 2009]
• Comments

The average wages of employees working in Japanese companies fell more than 7.1 percent in June compared with figures from a year ago, marking the largest drop since records began, according to the Ministry of Health Labor and Welfare.

The fall is in part due to bonus cuts implemented this year as companies try to survive the recession. The average wage -- including bonus and overtime -- now stands at 430,620 yen (4,498.7US dollars).

Statistics show summer bonus payments fell 14.5 percent to 167,044 yen, while overtime pay fell 17.7 percent to 15,725 yen. The fall in overtime pay is due in large part to manufacturers drastically reducing their overtime bills.

However, as the government's measures to promote the use of green electronics products begins to take hold, the decline in overtime in the manufacturing sector eased off for the third consecutive month. The drop of 40.7 percent in June is almost 2 percent less than the 42.6 percent fall in May. (1 US dollar is equivalent to 95 yen)