Retail wages are climbing in New Zealand according to a new report by Retail NZ, which found the average retail wage rose 6.1 per cent in the last year, and now sits at $25.05 nationally.

“There has been strong movement in average wages across the sector over the past year, both because of the substantial increases in the minimum wage, but also because of the war for talent and the need to attract and retain great staff,” said Retail NZ chief executive Greg Harford.

“Retail is a really diverse industry, and there are a range of fascinating roles available to people who want to build a career in the sector. ”

There are regional differences, though retailers which operate nationally on average pay their staff more when compared to smaller, one-or-two-store businesses.

On average, businesses in Auckland tend to pay businesses around $25.99 an hour, while Wellington pays the lowest average rate at $24 an hour – reflecting the difficult business environment at the capital.

The data comes just weeks after the Ardern Government unveiled a radical overhaul of the country’s labour laws, known as the ‘Fair Pay Agreement’, which seeks to allow unions to negotiate on an industry-wide basis.

The idea is to improve wages and conditions across all members of an industry or occupation, as well as encourage businesses to invest in trading and ensure ‘good’ employers aren’t being undercut.

Harford called the system “hugely complicated” at the time, and would ultimately lead to fewer employment opportunities and drive costs for retailers.

“Retail NZ absolutely agrees that it’s desirable to improve New Zealand’ overall standard of living and to increase wages – but this needs to be driven by increased productivity, not a return to 1970’s style industrial negotiations,” he said.