New Zealand’s Labour Cost Index showed a marginal slowdown in wage growth in the fourth quarter of 2025, with the year-over-year increase easing to 2.0% from 2.1% in the previous quarter. The latest data, updated on 3 February 2026, compares the change in labour costs in the fourth quarter of 2025 with the same period a year earlier.
In the third quarter of 2025, labour costs were rising at a 2.1% annual pace, also measured against the same quarter of the prior year. The slight deceleration to 2.0% in the fourth quarter suggests wage pressures moderated only modestly, indicating a relatively stable cost environment for employers heading into 2026.
Because both the current and previous indicators are calculated on a year-over-year basis, the data provide a clear view of how labour cost pressures have evolved over the past year, with the latest figures pointing to a small but notable easing in overall wage inflation.
