Japan's nominal cash earnings edged down 0.2 percent year-on-year in November 2019, following after being unchanged in the previous month and compared to market expectations of a 0.6 percent gain. Regular pay, which accounts for the bulk of monthly wages, advanced 0.1 percent (vs 0.2 percent in October). On the other hand, one-off special payments fell 3.9 percent (vs -8.5 percent in October), while overtime pay declined 1.9 percent (vs -0.1 percent in October). Real wages fell 0.9 percent, after falling 0.4 percent in the prior month. That was the fastest decline since July due to the impact from a rise in the consumer prices. Wage Growth in Japan averaged 3.21 percent from 1972 until 2019, reaching an all time high of 35.02 percent in July of 1974 and a record low of -7.10 percent in June of 2009. source: Ministry of Health, Labour and Welfare, Japan
Wage Growth in Japan is expected to be 1.00 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Wage Growth in Japan to stand at 1.00 in 12 months time. In the long-term, the Japan Total Cash Earnings Growth is projected to trend around 1.60 percent in 2020, according to our econometric models.