Japan labor cash earnings fall in June

Japan's Ministry of Health, Labor and Welfare reported its preliminary estimates showed that labor cash earnings fell for the first time in thirteen months in June.

According to the report, total cash earnings dropped 0.4 percent y-o-y in June, following a revised 0.6 percent y-o-y rise in May (originally a 0.7 percent y-o-y gain). That was the first decline in nominal cash earnings since May 2016. Economists had expected the cash earnings would increase by 0.6 percent y-o-y.

Contractual cash earnings increased 0.4 percent y-o-y in June, while special cash earnings dropped 1.5 percent y-o-y.

The biggest drops in earning in June were recorded in such industries as scientific research, professional and technical services (-5.5 percent y-o-y), real estate and goods rental and leasing (-5.2 percent y-o-y), education (-3.7 percent y-o-y), compound services (-3.7 percent y-o-y), accommodation, eating and drinking services (-2.3 percent y-o-y) and information and communication (-1.9 percent y-o-y). On the contrary, the biggest increases were seen in living-related and personal services (+4.5 percent y-o-y), utilities (+3.7 percent y-o-y) and construction (+2.3 percent y-o-y).