Knock-On Effects Of The Holiday Slowdown Play Out In January Wages And Hours

Employment Hero, the global authority in employment (used by more than 10,000 NZ SMEs), has released its NZ Jobs Report for January. The economic aftershocks of the December-January holiday period are beginning to show up in New Zealand’s SME labour data, with January figures revealing softer wages alongside a tentative rebound in hours worked.

New data from Employment Hero’s January 2026 NZ Jobs Report shows median hourly wages edged down month-on-month, while hours worked increased slightly - a pattern that reflects businesses reopening, resetting rosters, and cautiously recalibrating costs after the holiday period.

The median total hourly rate fell to $35.50 in January, down from $35.60 in December, marking a -0.5% month-on-month movement, while wages remained up 1.6% year-on-year.

At the same time, average hours worked rose 0.6% month-on-month to 136.3 hours, suggesting employers are leaning more on existing staff rather than lifting pay as they move into the new year.

Key January insights

Median hourly wages dipped -0.5% MoM to $35.50, despite remaining up 1.6% YoY

Average hours worked rose 0.6% MoM, indicating post-holiday roster normalisation

Retail, Hospitality & Tourism recorded a 3.6% YoY increase in median hourly wages, standing out among major industries

Casual workers saw a -0.9% YoY decline in hourly rates, while part-time (+3.3%) and full-time (+3.4%) workers continued to see wage growth

Holiday hangover shows up in pay dynamics

While wage growth has moderated, the data suggests this is less a signal of weakening labour demand and more a reflection of seasonal dynamics and cost management. All major industries recorded a year-on-year decline in hours worked, with Construction & Trade Services (-2.2%) and Healthcare & Community Services (-2.0%) leading the slowdown - reinforcing that many SMEs are prioritising productivity and cost control early in the year.

At the regional level, wage growth diverged, with the South Island recording stronger year-on-year median wage growth (4.3%) compared with 1.3% in the North Island, highlighting uneven recovery conditions across the country.

What it means for SMEs

“January’s data paints a picture of employers cautiously re-engaging after the holiday period - increasing hours where needed, but holding the line on wages as margins remain tight. Rather than signalling a pullback, the numbers suggest a recalibration phase; businesses testing demand, managing payroll costs and delaying major pay adjustments until trading conditions become clearer later in the year,” explains Neil Webster, Employment Hero NZ GM.

About Employment Hero

Employment Hero is the global authority on employment, offering a world-leading Employment Operating System (eOS) that simplifies and optimises every stage of the employment process. Its award-winning platform combines HR, payroll, recruitment, and employee engagement tools with the groundbreaking employment superapp, EH Work, which integrates career management and financial wellbeing. Serving over 350,000 businesses and managing more than 2.5 million employees worldwide, Employment Hero reduces administrative burdens by up to 80%, enabling organisations to focus on their goals and create more productive, engaged teams. By revolutionising the employment marketplace, Employment Hero is making employment easier, more valuable, and rewarding for everyone.

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