UPDATE 1-Japan March wage earner earnings, overtime pay up

(Adds economist's comment)

(For more on Japan's economy, click [ID:nECONJP])

TOKYO, May 1 (Reuters) - Japanese wage earners' total cash
earnings rose 1.2 percent in March from a year earlier while an
increase in the number of full-time workers matched the fastest
rise in 15 years, government data showed on Thursday.

But economists say the strong employment figures may be
somewhat overstated as other government data showed a drop in job
vacancies. [ID:nL303999354]

"While companies will continue to be keen on hiring new
graduates, the economy is going through a soft patch and this
will likely weigh on overall job conditions," said Naoko Ogata,
senior economist at Japan Research Instutite.

An official at the welfare ministry, which compiles the data,
said companies may have become more inclined to hire full-time
workers ahead of revisions this month to labour laws to promote
hiring of permanent employees.

The number of general employees, who are defined as full-time
workers, increased 2.3 percent. It was the biggest gain since
February 1993, when the number also rose 2.3 percent.

Meanwhile, part-timers were up 0.8 percent, marking the
smallest rise since December 2005, when the number fell 0.6
percent.
The ministry official also pointed to an increase in
full-time workers as one of the possible reasons for a firm rise
in overtime pay.

Overtime pay, a barometer of corporate activity, rose 4.1
percent, the biggest jump since December 2004 when it rose 4.9
percent.

Total cash earnings, which include overtime pay, monthly
wages and special payments, stood at 285,224 yen ($2,744) in
March.

The 1.2 percent annual rise in March followed a revised 1.5
percent rise in February and a 1.6 percent gain in January.

The following table shows preliminary data for monthly
incomes and numbers of workers in March:
---------------------------------------------------------

MARCH MARCH FEB
Payments (yen) yr/yr change (pct)
Total cash earnings 285,224 yen +1.2 +1.5*

Monthly wage 271,545 yen +0.9 +1.2*

-Regular pay 250,818 yen +0.6 +1.1*

-Overtime pay 20,727 yen +4.1 +2.5*

-Special payments 13,679 yen +7.3 +19.6*
---------------------------------------------------------
Number of workers (million)
Overall 44.335 mln +1.9 +2.0
-general employees 32.929 mln +2.3 +2.1*
-part-time employees 11.405 mln +0.8 +1.5*
---------------------------------------------------------

*denotes a revision from preliminary data.

The ministry defines "workers" as 1) those who are employed
for more than one month at a firm that employs more than five
people, or 2) those who are employed on a daily basis or have
less than a one-month contract but had worked more than 18 days
during the two months before the survey was conducted at a firm
that employs more than five people.

To view the full tables, see the ministry's Web site at:
here ($1=103.92 Yen)
(Reporting by Yuzo Saeki)