New Zealand’s real minimum wage also fell over the 12 months to April 2026, according to the OECD report. This puts it among 11 countries, including Australia, Belgium, Canada, France, Greece, Luxembourg, Poland, Spain, Türkiye and the United States, where the statutory minimum wage lost ground to inflation over that period.
The OECD attributed the broader slowdown in real wage growth across member countries to several factors, including weaker labour productivity, easing labour market tightness, and “geopolitical and trade tensions” that have “maintained a climate of high economic uncertainty.”
Looking ahead, the organisation warned that rising energy costs stemming from the Middle East conflict could further weaken labour markets while pushing inflation higher, a combination that would put additional downward pressure on real wages.
The OECD Employment Outlook 2026, titled Geographic Disparities in Jobs and Incomes, covers labour market developments across the organisation’s 38 member countries.
Economists push back
Economists told Radio New Zealand that while the picture was grim, it may be being made to look worse by the data being used. The report draws on the labour cost index (LCI), which measures what employers pay for specific roles.