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Chapter 2  Wages and Working Hour Trends

Total cash earnings decreased two years in a row, recording the greatest drop since the comparable year, 1991, due to a greater reduction in scheduled cash earnings and special cash earnings despite a smaller decline in non-scheduled cash earnings. Real wages also decreased two years in a row.
Non-scheduled working hours increased slightly, reflecting the recovering production. However, total working hours decreased for two years in a row due to the continued decline in scheduled working hours.

Wages Trends
The economy hit bottom in 2002, but total cash earnings in 2002 decreased for two years in a row, down 2.4% from the previous year. Within total cash earnings, scheduled cash earnings were down 1.2%, non-scheduled cash earnings down 0.9% and special cash earnings down 7.3%. The real wages decreased two years in a row, down 1.3% from the previous year (Table 7).
The rate of spring wage increases in major private companies in 2002 stood at 1.66%, having decreased for five years in a row, thus recording a historical low.
The shrinkage of scheduled cash earnings was affected by the increased share of part-time employees contributing to the decrease in working hours and average hourly wage, and the decrease in scheduled cash earnings for full time employees at 0.3%, for the first time since the comparable year 1994, reflecting the lower rate of wage increases.
The bonuses, occupying the major part of special cash earnings, decreased 5.9% in summer and 5.0% in winter from the previous year, recording the greatest decline since the comparable year, 1991.

Working Hour Trends
Total working hours in 2002 was down 0.8% from the previous year. Scheduled working hours decreased 1.0% from the previous year and the non-scheduled working hours increased 0.1%, reflecting the recovering economy.
Non-scheduled working hours increased in industries other than mining, construction and services. The non-scheduled working hours (seasonally adjusted) of the manufacturing industry continued rising in 2002 from the bottom experienced in October-December, 2001. This reflected production trends. The increase in non-scheduled working hours slowed down slightly due to the lower growth rate of production in the latter half of 2002 and the weaker growth toward the year-end (Figure 8).
Scheduled working hours decreased throughout the year when compared to the previous year. This was affected by fewer days worked, the rising share of part-time workers and the decreasing scheduled working hours of part-time employees.

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