OCR Cut: “This Isn’t A Windfall… It’s Recovering Lost Ground!”

According to leading New Zealand employment platform Employment Hero, the cut will only go a way towards helping Kiwi’s recover from the past year, rather than delivering extra money for households.

Ben Thompson, Co-founder and CEO of Employment Hero:

"Employment Hero’s latest October jobs data suggests the inflationary pressure from the labour market hasn’t just paused, it has reversed. While median wages are still up 3.0% year-on-year, the real story is in the immediate trend: a 1.4% drop quarter-on-quarter and a further 0.1% slide in October. Hours worked are down 0.6% year-on-year, and even young workers, the group that drove the strongest growth last year are now seeing their hours cut.

This data indicates that the RBNZ’s tightening cycle has done its job. With the median hourly rate settling at $35.10, wage growth is no longer a driver of inflation. In fact, the quarter-on-quarter contraction suggests businesses are rapidly reducing variable costs.

A rate cut gives New Zealanders relief, but it’s catch-up, not getting ahead. For small businesses, this move isn’t a windfall, it simply restores some of the ground workers have already lost, it doesn’t push them forward. The opportunity now is for SMEs to use this breathing room to support their teams heading into Christmas, because many workers are still under real financial pressure."

New data from Employment Hero’s Oct Job Report (10k+ NZ SMEs) includes:
• Wages down 1.4% QoQ and 0.1% MoM
• Hours worked down 0.6% YoY
• Casual hours down -8.9% YoY
• Even 18–24 yr olds saw their hours fall

• Only one region (Taranaki) saw real hours growth

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