### Section 2. Trends of wages and working hours

In 2012, the Japanese economy showed a movement toward recovery until summer thanks to the reconstruction demand, policy effects, etc. After that, the economy weakened in line with the slowdown of the global economy, reducing export and production.

Looking at the wage trends in 2012 under these circumstances, the total sum of cash earnings declined for a consecutive 2 years and the scheduled wages declined for a consecutive 7 years. On the other hand, as for the working hours, the extra working hours increased for a consecutive 3 years and the total actual working hours and scheduled working hours increased for the first time in 2 years.

## (The total sum of cash earnings showed a weak tone in 2012)

The total sum of cash earnings decreased for a consecutive 3 years since 2007 on a year-to-year basis; although it had increased in 2010, it turned downward again in 2011, and the decrease rate worsened in 2012, showing a decrease by 0.7%.

## (The increased ratio of part-time workers also contributed to the decrease of the total sum of cash earnings)

Looking at the transition of total sum of cash earnings under Figure 6, the amount by all employment forms peaked in 1997 with 360,000 yen, and continued to decrease after that; the amount in 2012 decreased by 12.8% compared to the amount in 1997. During the same period, full-time workers decreased by 4.3% and part-time workers increased by 3.4%.

By breaking down the increase or decrease of the total sum of cash earnings under all employment forms into 5 factors (the growth of scheduled wages of full-time workers, growth of non-scheduled wages of full-time workers, growth of special wages of full-time workers, growth of wages of part-time workers, and change of the ratio of part-time workers), we can see that the increase of the ratio of part-time workers, whose total sum of cash earnings is relatively low, consistently constitutes a factor for the decrease of the total sum of cash earnings.

## (While the change in the scheduled wages of full-time workers is small, the change differs according to sex, age class and industry)

Focusing on the breakdown of full-time workers' total sum of cash earnings, we can see that the fluctuation of scheduled wages is small (except for 2002 after the collapse of the IT bubble and 2009 after the financial crisis) and the fluctuation of special wages is generally large after 1998 when the total sum of cash earnings began to decrease. When comparing the real values in 1997 between that of 2012, we can see that the scheduled wages remained at the same level, but the special wages decreased.

Looking at the transition of full-time workers' scheduled wages in the 2000s by industry according to the "Basic Survey on Wage Structure" (Ministry of Health, Labour and Welfare), the scheduled wages tend to increase in the industries including finance, insurance and information and communications whose fixed wages are higher than those of all industries, but tend to decrease in many other industries including wholesale and retail, restaurants, services, transportation, and postal services.

## (In 2012, all of the total actual working hours, scheduled working hours and extra working hours increased)

Looking at the transition of total actual working hours under Table 7, the working hours slightly decreased in 2011 in line with the decrease of the scheduled working hours, but in 2012, the scheduled working hours and extra working hours increased and the total actual working hours increased by 0.5%.

The extra working hours tend to fluctuate, being affected by economic trends. As for the transition on a quarterly basis, the extra working hours temporarily decreased in the period from April to June 2011, by 1.1% on the year-to-year basis, partly due to the impact of the Great East Japan Earthquake, then gradually increased from the period from July to September, and again turned into decrease in the period from July to September 2012.

Looking at the transition of production and overtime hours, the extra working hours (seasonally adjusted) in the manufacturing industry temporarily decreased due to the decline of production affected by the Great East Japan Earthquake. Although the production did not recover to the level immediately before the earthquake, the extra working hours picked up and exceeded the pre-quake level; however, in the context of declining production due to slowdown of the global economy, the extra working hours once again decreased, in the period from May to November 2012. In and after December, the extra working hours turned into increase, in line with the recovery of production due to the improved export environment, etc.