New Zealand wage growth 'worst in the world' - new report shows
A new OECD report indicates that New Zealand has experienced some of the worst real wage growth among developed nations over the past five years. While economists suggest the data might be skewed by specific measurement methods, the findings highlight a significant cost-of-living struggle.
Why it matters
The report provides a comparative look at global economic health and the impact of inflation on worker purchasing power.
New Zealanders have had some of the worst wage growth in the world in recent years, when adjusted for inflation. <a href="https://www.rnz.co.nz/news/personal-finance/700162/new-zealand-wage-growth-worst-in-the-world-oecd-report" target="_blank"><b>By Susan Edmunds of RNZ</b></a> The Organisation for Economic Co-operation and Development (OECD) released its latest employment outlook research on Tuesday, looking at disparities in jobs and incomes around the world. Australian commentators noted that Australia performed poorly - but this side of the Tasman fared even worse. The data showed New Zealand had the worst wage growth after inflation over the past five years, of any OECD country. "Despite persistent annual growth, in Q1 2026, real wages remained below their Q1 2021 levels in about one-third (13) of the 37 countries analysed," the report said. "Real wages were more than 2% below Q1 2021 levels in a quarter of countries: Australia, Czechia, Denmark, Italy, New Zealand and Sweden.
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