Total cash earnings have declined four years in a row, but the seasonally-adjusted index for 2004 shows this trend leveling off overall. Breaking the figures down by employment pattern, total cash earnings increased for both full-time and part-time workers, but the increased percentage of part-time workers in the labour force contributed to an overall decline. While scheduled cash earnings and special cash earnings continued to decline, non-scheduled cash earnings increased for the second consecutive year.

Total hours worked started to rise because of the third straight year of an increase in non-scheduled hours worked on one hand, and a lower width of decline for the second consecutive years in scheduled hours worked on the other.

## (Wage Trends)

During 2004, non-scheduled cash earnings increased by 4.8% over the previous year, the second consecutive annual increase and a faster rise than the year before, due to an increase in non-scheduled work hours. Scheduled cash earnings, however, were down 0.7% and special cash earnings dropped 1.8%, showing a continued downward trend. Total cash earnings declined 0.7%, the fourth consecutive annual decrease. Looking at the seasonally-adjusted index for the year, however, the overall trend was flat. By employment pattern, cash earnings increased from the previous year for both full-time and part-time workers, but the increasing ratio of part-time workers in the workforce contributed 1.1 percentage points to the overall decline. Real wages were down 0.7% from the previous year, the fourth straight annual decline (Table 7).

Scheduled cash earnings fell for the fourth consecutive year. Looking at the numbers by employment pattern, they were down 0.1% for full-time workers and up 0.7% for part-time workers. Overall, the decline in scheduled cash earnings was the same as in 2003. The increased ratio of part-time workers in the workforce contributed 0.7% percentage points to the overall decline.

The rate of spring time wage increases in major private-sector corporations in 2004 was 1.67%, the first increase over the previous year's rate in seven years. Although the level of wage increases remains low, favorable signs reflecting economic recovery are becoming visible.

Looking at bonuses, which account for the majority of special cash earnings, summer bonuses increased over the previous year for the first time in two years, by 1.2%, while winter bonuses were up by 2.7%, the first annual increase in eight years.

The movement of wages is closely related to corporate profits, but in recent years there has been a tendency for wages to decline even when profits are up. Now, however, wages are holding steady within a particular range (Figure 8).

## (Trends in Hours Worked)

During 2004, non-scheduled hours worked increased by 3.3% from the previous year, while scheduled hours worked decreased by 0.2%. The decreased rate of decline led to an overall annual increase in hours worked of 0.2%.

Non-scheduled hours worked increased for the third consecutive year, but the rate of increase slowed. Seasonally-adjusted non-scheduled hours worked in the manufacturing industry showed an annual increase from the second quarter (April-June) of 2003 through the same quarter in 2004, but declined from the previous quarter during the second half of the year, reflecting production trends (Figure 9).

Breaking down the figures by employment pattern, scheduled hours worked increased for both full-time and part-time workers. However, the increased ratio of part-time workers in the workforce contributed a drop of 0.6% percentage points, leading to the fourth straight year of overall decline.