This is pretty much what's occurring in New Zealand right now, yes. 2020–2023 had pretty much zero international movement due to closed borders with COVID-19, with a low official cash rate which caused business to be in desperate need of development resource; so salaries were high.

Market rate for developers has either stagnated generally or depending on the role dropped as hundreds of applicants are willing to undercut each other on what constitutes an acceptable pay check.

But most employers don't go around reducing previously-hired people's salaries for a variety of reasons.

> But most employers don't go around reducing previously-hired people's salaries for a variety of reasons.

The main reason being that it's illegal in NZ. The employee would have to agree.