Those aged 18-24 years fared much better, with wages expanding 1.8% year on year.
Workers between 35-44 years of age had annual wage growth of 0.1%, while wages for those aged 45-54 increased 0.3%.
Neil Webster, Employment Hero general manager for New Zealand, said the data continues the trend of real-term losses for workers.
“With wage growth now falling well behind inflation, workers will continue to feel it in the back pocket, which piles more pressure on to an already high cost of living,” he said.
“Salaries have been struggling for a year, with the downward trajectory starting this time last year when wage growth stood at 4.7% year on year.
“The drop to -0.4% has been rapid.”
The report covered more than 2000 businesses and 85,000 employees.
Webster said inflationary pressures, oil price challenges and softer consumer demand were all still in play for businesses.
“We don’t expect a quick turnaround. It’s fair to say New Zealand business leaders are playing it safe, with a focus on keeping costs under control rather than growing headcount.”
He said the current employment market favours employers.
“There are plenty of workers available, staff are sitting tight in their roles,and there’s no pressure to pay more.”
Stats NZ said last week that unemployment rose to 5.6% in the June quarter – the highest recorded in more than a decade.
Of the 166,500 people who were unemployed in the June 2026 quarter (not seasonally adjusted), 19% had been unemployed for more than a year.
Webster said this reflected a labour market that’s cooling across the board.
Earlier this week, Seek’s latest Employment Report showed hiring activity fell for the third consecutive month as monthly job ad volumes decreased 0.8% in July.
Job ad volumes are now 6.2% higher year on year.
“Conditions remain strongest in the South Island, while larger centres, including Auckland, Wellington and Waikato, continue to face greater headwinds,” Seek NZ country manager Rob Clark said.