14 I	0.1	0.5	0.8	0.1	0.0	5.4	0.6	6.3	0.8	1.1	6.2	1.1	-1.8

Source: "Monthly Labour Survey" Ministry of Health, Labour and Welfare

(Note) 1) Total of the surveyed industries; business establishments with 5 or more employees.

2) The rates of increase or decrease, including year-on-year ones, are the values with modification to such matters as the gap resulted from change in establishments extracted from the survey subjects, and do not always match with the results of calculation based on real amount.

3) The increase/decrease rate of real wage (total sum) is calculated based on the real wage index (total sum of cash earnings divided by consumer price index (general index excluding attributed rent of one's own house).

4) "Wage of part-time workers" is estimated by the Office of Counselor for Labour Policy, MHLW, based on the "Monthly Labour Survey"

Figure 10: Changes in bonus (year-on-year)

☐ In 2013, summer bonus increased for the first time in three years and year-end bonus increased for the first time in five years.

Source: Prepared and estimated by the Office of Counselor for Labour Policy, MHLW, based on the "Monthly Labour Survey" Ministry of Health, Labour and Welfare

(Note) Total of the surveyed industries; business establishments with 5 or more employees.

## (Real income of employees related to macro-level consumption increased)

In order to see the influence on macro-level consumption, it is necessary to look at the income of employees that can be found by multiplying wage per person by the number of workers. As previously mentioned, real wages per person in 2013 decreased by 0.5% from the previous year because commodity prices increased while the nominal wage per person remained unchanged. How about changes in the real income of employees?

According to Figure 11 that shows real income of employees, real income of employees in 2013 increased from the previous year as the increase rate in the number of employees exceeded the decrease rate from rising commodity prices. It is considered that this has contributed to the private consumption growth at a macro level.

In the shunto (annual spring wage offensive) in 2014, many companies maintained the amount corresponding to periodic wage increase and raised their wages. In the future, it is expected that the nominal wage will increase and the said actions of companies will put positive effects on the real income of employees and consumption at a macro level.

## (Employment trend has turned from excessive to insufficient trend in 2013)

In the recovery phase, it is important that corporate profits improve, they become the capital of wage improvement and are distributed to employees. The focus is now put on the trend of labour share ratio in order to check how much improved corporate profits are distributed in 2013.

According to Figure 12 that shows the transitions of labour share ratio, the ratio increased amid economic recession in Japan in the late 1990s and has remained high. After that, in early 2000s, the so-called "excessive employment" issue was resolved and companies became careful about increasing wages. This resulted in the decrease of labour share ratio as wage increase weakened compared to that in corporate profits. Although the labour share ratio increased from the influence of the financial crisis and the Great East Japan Earthquake, it started to decline in 2013 in conjunction with the increase in corporate profits.

On the other hand, the ratio of active job openings to active job applicants exceeded 1 and the excessive employment trend of companies has turned to an insufficient trend. Labour supply and demand has become