Story perspectives

OECD Flags NZ Hours Fell 0.8%, Wage Outlook Grim

7/11/2026

Summary

Story summary

The Organisation for Economic Co-operation and Development (OECD) reported New Zealand’s hours worked fell 0.8 % between 2023 and 2025, fifth-largest decline among OECD members.
Finance Minister Nicola Willis blamed the wage-price gap on the Labour government’s policies, noting real wages stay near trough after inflation peaked at 7.3 % in June 2022.
The OECD warned that geopolitical tensions and New Zealand’s labour productivity could keep labour markets weak and suppress wage growth through 2027.

History

Historical Context

The 2008 global financial crisis, which peaked in September 2008, triggered a recession that stalled wage growth. In New Zealand, the Treasury recorded a 1.5 % drop in hourly earnings and 6.5 % unemployment in 2009 under Finance Minister Bill English. The OECD now flags a 0.8 % decline in hours worked, prompting Reserve Bank and IMF to revisit fiscal tightening and rate hikes that steadied economy after crisis.

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Story summary

The Organisation for Economic Co-operation and Development (OECD) reported New Zealand’s hours worked fell 0.8 % between 2023 and 2025, fifth-largest decline among OECD members.
Finance Minister Nicola Willis blamed the wage-price gap on the Labour government’s policies, noting real wages stay near trough after inflation peaked at 7.3 % in June 2022.
The OECD warned that geopolitical tensions and New Zealand’s labour productivity could keep labour markets weak and suppress wage growth through 2027.

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