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31-May-07 11:30 [Asia Pacific]
Japanese wages down low despite unemployment fall Japan has experienced an unexpected fifth successive month of wage deflation, despite the increased strength of the labour market.
The Labour Ministry said that wages fell 0.7 per cent in the year to April 2007, Bloomberg reports.
A survey of eight economists by the news agency before the figures were announced, had produced a median forecast of a 0.1 per cent rise.
The unexpected news came in a week of unemployment statistics which showed the jobless rate falling from four per cent to 3.8 per cent, the lowest in nine years.
Many economists are predicting wage hikes caused by falling unemployment as the year progresses, with Sumitomo Mitsui Asset Management's senior economist Hiroaki Muto telling Bloomberg: "The jobless rate is expected to fall close to 3.5 percent, which will start fueling wages and give thrust to inflation."
The news of the falling joblessness figures had coincided with rising consumer spending.
Spending in April was up 1.1 per cent, exceeding economist's predictions and further fuelling predictions of growth.
Over 500 ground staff took part in a strike which resulted in heavy disruptions to flights in and out of Hong Kong after employee benefits were halved, it has been reported.
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Kevin Rudd, the prime minister of Australia, has brought together his ministerial "razor gang" in order to slash unnecessary spending in order to aid investment in pensions, it has been reported.
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