Japan's cash profit is down 3.2% in December

Bayanalysis - Japan's nominal cash earnings fell 3.2% year-on-year in December of 2020, according to Japan's Ministry of Health, Labor, and Welfare.


The decline in nominal cash earnings was the biggest drop in twelve years, after a 1.8% drop in the previous month.

Ordinary wages, which account for the bulk of monthly wages, fell by 0.8% after declining by 0.9% in the previous month.

Meanwhile, private cash profits fell 5.4% after declining 12.8% in November Real wages contracted 1.9%, after falling 0.7% the previous month.

Wage growth refers to changes in average cash earnings, including contractual and private cash dividends, in companies with about five or more employees, in Japan.

It is noteworthy that the highest nominal cash profits were recorded in Japan in July 1974, and at that time they grew by about 35.02%, while the lowest nominal cash profits there were in June 2009 and recorded a decline of 7.1% at the time.