Japanese workers’ base salaries have seen the largest increase in over three decades, supporting the Bank of Japan’s view that the economy remains on a recovery track and backing the case for a rate hike in coming months.
The pace of gains in base pay quickened to 2.6% year on year in September, versus a 2.4% clip in August, the labor ministry reported Thursday. The advance was the strongest in over 31 years.
Nominal cash earnings increased by 2.8%, missing the consensus estimate of 3%, while a more stable measure of wage trends that excludes bonuses and overtime and avoids sampling issues registered 2.9% growth for full-time workers, accelerating slightly from the previous month’s 2.8%.
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