Average weekly earnings

IBISWorld anticipates average weekly earnings to rise by 0.6% during 2026-27 to reach $1,615.87. According to StatsNZ, average weekly earnings expanded between 2019-20 and 2024-25, reflecting broader economic trends like increasing demand for skilled labour, which led to higher wages to attract and retain employees in a competitive job market. Developments like changes in employment laws, evolving workplace dynamics and rising living costs have influenced wage adjustments, contributing to the overall upwards trajectory of earnings across different demographics. However, in 2025-26, weak GDP growth and lagging business confidence slowed average wage growth. In the December 2025 quarter, real GDP rose just 0.2% and GDP per capita was flat, reflecting the subdued economic environment.

ANZ-Roy Morgan data indicates that consumer confidence fell from 100.1 in February 2026 to 91.3 in March 2026, reflecting expectations of weak financial conditions that are likely to slow wage growth through 2026-27. The unemployment rate rose to 5.4% in the December 2025 quarter, and the underutilisation rate has continued to increase since September 2024, further dampening wage pressures. Westpac's March 2026 forecast update projects unemployment to peak at 5.6% in mid-2026 before easing to 5.4% by year-end, with this labour market weakness expected to suppress the recovery in household spending through 2026-27.

As of December 2025, men earned an average of $1,700 per week, up from $699 in 2000, while women's average weekly earnings rose to $1,305 from $442 over the same period. This trend indicates a narrowing of the wage gap, which decreased from around 33% in 2000 to approximately 23% in 2025, highlighting ongoing progress towards gender pay equality. This is supported by growth in the female working-age population. However, recent legislative changes have affected progress on pay equity. In May 2025, the government tightened pay equity laws, making it more difficult to lodge claims and limiting pathways for workers seeking pay equity settlements.

Wage growth has varied significantly across sectors. Over the five years through 2024-25 (latest available data), average weekly earnings in retail have grown at a compound annual rate of 5.3%. Data from Westpac indicates that in the year to December 2025, the volume of retail goods sold rose by 4.4%, marking the fifth consecutive quarter of strong growth in retail spending. However, some of this growth was supported by tourism rather than solely by domestic consumer demand. Healthcare wages have experienced even stronger growth, rising at a compound annual rate of 6.6% over the same period. New Zealand's ageing and expanding population has placed mounting pressure on the healthcare system, prompting providers to offer competitive salaries to attract and retain talent. In particular, increased remuneration in the public health sector has created difficulties for private sector providers, which have struggled to match public sector pay rates. In April 2026, the adult minimum wage was raised to $23.95 per hour, up from $23.50, contributing to the overall rise in average weekly earnings across the economy and lifting wages for over 122,500 workers previously earning below the new minimum wage rate. Overall, IBISWorld forecasts average weekly earnings to increase at an annualised 3.2% over the five years through 2026-27.