New Zealand's purchasing power is at its highest in 40 years, but the Council of Trade Unions says improving economic conditions have not yet led to more jobs and increased pay.
Figures from Statistics New Zealand show the Terms of Trade have increased 16% this year to the highest levels since 1973.
However, the CTU says the economic recovery hasn't translated into lower unemployment and improved pay.
The Institute of Economic Research says higher terms of trade do benefit average New Zealanders by decreasing the cost of imported goods.
It says there is still some slack in the labour market but expects wage growth to pick up in the next year or two.