Trends in Wages

    Against the backdrop of a rapidly worsening employment situation and reduced corporate earnings, growth of scheduled cash earnings as part of wages in 1998 (for establishments with 5 employees or more) was the lowest ever since this study was initiated, reflecting the fact that the rate of wage raises tied to spring wage offensives in 1998 was the lowest ever. In addition, non-scheduled cash earnings and special cash earnings declined significantly. As a result, the total amount of cash earnings declined by 1.3% from the previous year, marking the first such decline since this study was initiated (Fig. 14). Consequently, real wages declined by 2.0% from the previous year despite the fact that consumer prices stabilized mainly due to the lessening impact of the consumption tax increase in 1997.
    According to a survey by the Labour Relations Bureau (LRB) of the Ministry of Labour, the spring wage increases among major private companies in 1998 were 2.66%, falling below the 2.90% figure of 1997 and marking the lowest increase since 1965 (when comparable statistics were first available). Summer bonuses from major private companies rose 1.11% from the previous year, but the growth rate was lower than in 1997 (2.89% increase). Year-end bonuses decreased by 1.83% from the previous year, which had seen an increase of 2.78%. According to the Monthly Labour Survey, bonuses, including those paid by small and medium-sized companies (establishments with 5 employees or more) fell in both the summer (2.1% decline) and winter (2.9% decline). These declines were due primarily to lower operating profits and a worsened balance of supply and demand for labour. The winter decline was also influenced by the stabilization of consumer prices since 1997.

A Continued Decline in Total Working Hours

    Total working hours (at establishments with 5 employees or more) continued to decline (Fig. 15), falling by 1.1% from the previous year (a 1.4% decline in 1997). As in 1997, declines in scheduled working hours were greater in smaller establishments due to the increased percentage of establishments applying the legally mandated 40-hour work week system.

A Significant Decline in Non-scheduled Working Hours in the Manufacturing Industry

    In 1998, non-scheduled working hours declined significantly in the manufacturing industry against the backdrop of the economic sluggishness. In addition, non-scheduled working hours also declined by wider margins in the construction industry, as well as among wholesale and retail trade and eating and drinking places. As a result, overall non-scheduled working hours declined, reversing the increase seen in 1997. However, in the second half of 1998, levels remained flat or declined less drastically.

Trends in Industrial Accidents

    In 1998, the number of industrial accidents (deaths and injuries requiring an absence from work of four days or more) continued to decline. Accidents totaled 148,248, a decline of 5.4% from the previous year. The 1,844 deaths in 1998 represented a decline of 11.3% from the previous year, and for the first time, the figure has fallen below 2,000.