TOKYO, June 6 (Reuters) - Japan's real wages were flat in April from the same period a year earlier, with rising prices offsetting gains in nominal pay and possibly hurting households' purchasing power.
Real wages, which are adjusted for moves in consumer prices, were flat in April from a year earlier, labour ministry data showed on Tuesday. It followed a revised 0.3 percent annual fall in March.
Wage earners' nominal cash earnings rose an annual 0.5 percent in April, the biggest rise in four months. Revised data showed that nominal wages were flat from a year earlier in March.
A rebound in overseas demand has helped boost Japan's exports and output in recent months, and the world's third-largest economy grew in the first quarter to mark the longest period of expansion in a decade. But the sluggish growth in real wages suggests benefits of the recent recovery have yet to fully reach Japanese households.
Household consumption fell more than expected in April due to lower spending on cars and education fees, separate data showed, signalling consumer spending continues to lag behind improvement in other areas of the economy. Regular pay, which accounts for the bulk of total pay and determines base salaries, has been generally rising in recent months and in April grew an annual 0.4 percent, the biggest increase in three months.
Special payments, such as bonuses, in April grew 5.6 percent from a year earlier, following a revised 1.7 percent annual rise the previous month, data also showed.
Special payments are generally small, so even a slight change in the amount can cause big percentage changes.
Overtime pay, a barometer of strength in corporate activity, dipped 0.2 percent in April from a year earlier, following a revised 0.6 percent annual decline in March.
The following table shows preliminary data for monthly incomes and numbers of workers in April: ----------------------------------------------------------------Payments (amount) (yr/yr pct change)Total cash earnings 275,321 yen+0.5-Monthly wage 264,100 yen+0.4 -Regular pay 243,717 yen+0.4 -Overtime pay 20,383 yen-0.2-Special payments11,221 yen+5.6 ----------------------------------------------------------------Number of workers(million)(yr/yr pct change)Overall49.745 mln+2.5-General employees 34.791 mln+2.9-Part-time employees 14.954 mln+1.8 ----------------------------------------------------------------
The ministry defines "workers" as 1) those who are employed for more than one month at a firm that employs more than five people, or 2) those who are employed on a daily basis or have less than a one-month contract but had worked more than 18 days during the two months before the survey was conducted at a firm that employs more than five people.
To view the full tables, see the labour ministry's website at: (Reporting by Minami Funakoshi; Editing by Jacqueline Wong)
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