New Zealand Wage Growth Turns Negative Amid Rising Inflation

New Zealand's wage growth has turned negative for the first time in over a year, according to a report from Employment Hero. The median hourly rate of employees declined by -0.1% month-on-month and -0.4% year-on-year in July.

Neil Webster, General Manager at Employment Hero New Zealand, attributed this decline to the downward trajectory starting last August when wage growth stood at 4.7% year-on-year. The drop to -0.4% has been rapid, and Webster noted that real-term losses for workers continue.

The report found that older workers are being hit harder by the decline, with those aged 55-64 experiencing a -1.6% year-on-year decrease in their median hourly rate. On the other hand, younger workers saw wage growth of 1.8% year-on-year.