New Zealand wages data misreading prompts productivity overhaul

Media outlets cited an OECD chart that appeared to show New Zealand real wages falling 6.4% over the past five years, the steepest decline among OECD members. Economists quickly highlighted that the OECD had used the LCI series, which does not measure workers' wages, leading to a misleading picture. When the appropriate series—either the LCI Analytical Unadjusted data or the QES average hourly earnings—are deflated by CPI, the result shows wages have been roughly flat or modestly higher since the start of the pandemic.

Separately, a joint briefing by MBIE and MFAT on New Zealand’s productivity notes a two‑decade decline in the country’s economic complexity, signalling a shift away from high‑value, knowledge‑intensive activities. The report recommends re‑balancing investment toward such sectors and adopting a systems‑wide approach to policy, emphasizing feedback loops and strategic assessment to boost future productivity.