New Zealand's SME wages dipped slightly in Jan 2026, with year-on-year growth in retail, hospitality, and tourism, but hours fell across most sectors amid economic uncertainty.

In January 2026, New Zealand’s SMEs saw median hourly wages dip slightly to $35.50, down 0.5% from December but still 1.6% higher year-on-year, while average hours worked rose 0.6% to 136.3, reflecting post-holiday staffing adjustments. Wage growth was strongest in retail, hospitality, and tourism (3.6% year-on-year), with full-time and part-time workers gaining, but casual wages declined 0.9%. All major industries reported year-on-year drops in hours worked, particularly construction and healthcare. The South Island saw 4.3% wage growth versus 1.3% in the North Island. Experts say the data reflects a seasonal recalibration, with firms managing tight margins and delaying major pay increases amid uncertain economic conditions.