# Trend of wage increase

The total sum of cash earnings is in a rising trend in 2013.

In the shunto (annual spring wage offensive) in 2014, many companies maintained the amount corresponding to periodic wage increase and raised their wages including base ups.

(Analysis of factors of employees' real income)

## Source:

Prepared by the Office of Counselor for Labour Policy, MHLW, based on "Monthly Labour Survey," MHLW and "Labour Force Survey," "Consumer Price Index" Statistics Bureau, Ministry of Internal Affairs and Communications.

## (Note)

(Results of wage increase)

1) Income of employees is calculated by multiplying the number of employees (excluding agriculture and forestry industry) by total sum of cash earnings and "general index excluding attributed rent of one's own house" is used to determine the deflator of real value.

2) Total sum of cash earnings is the total of the surveyed industries for business establishments with 5 or more employees.

## Source:

"Situation of Demands and Conclusions of Negotiations for Wage Increase in Major Private Companies (Springtime)" MHLW, "Settlement Results of the Labour-Management Negotiations in the Springtime in Large-Scale Businesses (weighted average)(final results)" Japan Business Federation, "Results of Final Responses to the Policy for Spring Struggle for a Better Life" Japanese Trade Union Confederation

## (Note)

1) In principle, major companies surveyed for the "Situation of Demands and Conclusions of Negotiations for Wage Increase in Major Private Companies (Springtime)" before 2003 are those having a labour union with a capital of 2 billion yen or more and 1,000 or more employees, of those which are listed on the first section of the Tokyo Stock Exchange or Osaka Securities Exchange. Companies surveyed after 2004 are basically those having a labour union with a capital of 1 billion or more and 1,000 or more employees (weighted average).

2) Calculation for Japanese Trade Union Confederation is the union total and includes unions of small and medium-sized enterprises with less than 299 employees.

3) Companies surveyed by Japan Business Federation (large-scale businesses) are basically those that are listed on the first section of the Tokyo Stock Exchange and with 500 or more employees.

The total sum of cash earnings had been declining for the second consecutive year after 2011, but started to pick up in 2013. Specifically, a rise in the ratio of part-time workers put declining pressure on it and scheduled wages decreased. However, non-scheduled wages increased as a result of larger product activities, which also contributed to the rise in special wages.

In order to see the influence on macro-level consumption, it is necessary to look at "income of employees" that can be found by multiplying wage per person by the number of workers. 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) of 2014, many companies maintained the amount corresponding to periodic wage increase and raised their wages including base ups. In the future, it is expected that the nominal wage will increase and the said actions of companies will put positive effects on real income of employees and consumption at a macro level.