Summer Bonuses at Major Japan Firms Down 8.27 Pct

Economy

Tokyo, Aug. 5 (Jiji Press)--The average summer bonus at major Japanese companies in 2021 dropped 8.27 pct from a year earlier to 826,647 yen, a Japan Business Federation survey showed Thursday.

The average amount fell for the third consecutive year and marked the steepest fall since the 17.15 pct marked in 2009, after the September 2008 collapse of U.S. investment bank Lehman Brothers. It fell below 900,000 yen for the first time in four years, reflecting the prolonged novel coronavirus epidemic.

Summer bonuses averaged 839,927 yen in the manufacturing industry, down 5.94 pct, and 773,522 yen in the nonmanufacturing sector, down 17.0 pct. The nonmanufacturing sector saw the biggest drop in bonuses since the current survey method began in 1997.

"The effects of the coronavirus is more apparent compared with last summer," said an official of the biggest Japanese group of employers, known as Keidanren.

The commerce sector, including department store operators, logged a steep drop, with a Keidanren official saying that summer bonuses fell by around 25 pct.

[Copyright The Jiji Press, Ltd.]

Jiji Press