Kiwi workers go backwards, as NZ’s real wage growth is the worst in the OECD
New data from the OECD indicates that New Zealand has experienced the most severe decline in real wages among 37 member countries over the past five years. The government and opposition are currently debating the causes, including the impact of previous inflation and current economic policy.
Why it matters
The decline in real wages reflects a significant cost-of-living crisis affecting the standard of living for the average worker.
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Real wages are now about 1% below where they were last year. Photo / 123RF
Working New Zealanders, who feel like they are going backwards financially, aren’t just imagining it.
Real wages, or nominal wages adjusted for inflation, have been falling over the past five years.
The drop in New Zealand has been the most severe of 37 countries in the Organisation for Economic Co-operation and Development (OECD).
Real wages are now about 1% below where they were last year, and 6% below where they were in the first quarter of 2021, according to the OECD’s real wage index.
The change over the past five years hasn’t been as bad for those on the minimum wage.
While the coalition Government has implemented small minimum wage hikes, the Labour Government upped the minimum wage substantially.
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