Pay Gaps Among Ethnic Communities in Aotearoa New Zealand

Abstract

This report provides the most detailed analysis to date of pay gaps between Aotearoa New Zealand’s Ethnic Communities and NZ Europeans. Using data from Stats NZ’s Household Labour Force Survey (2016–2024) and the Integrated Data Infrastructure, it finds that Ethnic Communities face an average pay gap of 7.2%. Outcomes vary widely across subgroups: Asian and Latin American workers experience wage penalties of up to 14%, while Continental European, Middle Eastern, and African+ workers often earn more than NZ Europeans. Despite generally higher education levels and favourable demographic profiles, many groups still face unexplained pay disparities, highlighting the potential role of structural barriers in the labour market.