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Japanese wages fell for the fourth consecutive month in April, albeit at a slower pace, as household spending rose at a slower than expected rate, according to official figures released on Friday.
Labor income fell 0.1% in April, according to figures released by the Japanese Ministry of Health, Labor and Welfare on Friday. The decline of the previous month was revised to 1.3% against 1.9% previously.
Real cash earnings, adjusted for inflation, were down 1.1%, down from a revised 1.9% decline in March.
Darren Aw, an economist for Asia's Capital Economics, expects a recovery in wage growth to remain difficult as "a slowdown in the labor market should limit wage growth in the coming years." come".
"We expect the gross domestic product will not reach its potential this year. This means that the unemployment rate will rise early enough and that wage growth will remain poor, "he said. "All in all, we believe the unemployment rate will reach 2.8% by the end of 2020 and that wage growth should stabilize around 0.5%."
Wage figures do not bode well for consumer spending, as the October sales tax increases on the horizon.
Household spending growth slowed in April to 1.3 percent year-on-year, down from 2.1 percent the previous month, according to the Japan Bureau of Statistics. The April reading was below the 2.6% increase forecast by a poll of Reuters economists.
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