 "Economists say New Zealanders frustrated by the cost of living, high interest rates and fewer job opportunities, are looking to Australia, the UK and elsewhere.")
For tourists and migrants, New Zealand is thought to be one of the world’s most attractive destinations.
But it looks like the natives don’t seem to agree.
New data shows that New Zealand is witnessing its citizens depart in record numbers.
But what is happening? And why?
Let’s take a closer look:
What happened?
Statistics New Zealand today presented data showing that 131,200 people left New Zealand from the beginning of this year to June.
That’s the highest number of exits for a year.
The data showed of those departing, 80,174 were citizens, which was almost double the numbers seen leaving prior to the COVID-19 pandemic.
Thirty-eight per cent of departing citizens were aged between 18 and 30.
Over a third of its citizens left for greener pastures in its arch-rival Australia.
That’s not all.
Even the number of new arrivals to New Zealand is stalling.
That number, which was at a peak of almost 180,000 in October 2023, has declined to 128,500 in the year 2024 till June, as per Bloomberg.
Though net migration – the number of those arriving minus those leaving – remains at a high level, economists also expect this to fall.
As per Bloomberg, net immigration was at 73,270 in June.
That figure was at 83,740 in the 12 months through May – the lowest since February 2023.
Impact Shorts
More ShortsThe highest net migration number was 136,600 in October 2023.
During the pandemic, encouraged by the then government’s handling of the outbreak, New Zealanders living overseas returned home in historically high numbers.
But the love affair with the country of 5.3 million, is over for some.
Why is this happening?
According to Statistics New Zealand, the exodus comes in the backdrop of a spike in unemployment, interest rates remaining high and slow economic growth.
Net migration will also likely decrease as the number of foreign nationals wanting to move to New Zealand falls due to the softer economy.
Economists say New Zealanders frustrated by the cost of living, high interest rates and fewer job opportunities, are looking to Australia, the UK and elsewhere.
Merrily Allen is currently planning her move with her partner and 14-year-old daughter in early 2025 to Hobart on the Australian island state of Tasmania
“There is a lot of opportunity over there. They’re always, always looking for people in my profession,” said Allen, who works in dental administration.
“I’ve got a lot of friends that have gone (to Australia) … purely because of better work opportunities, better living. Australia just seems to have it together.”
New Zealand’s economy is struggling after the central bank hiked cash rates 521 basis points in its most aggressive tightening since the official cash rate was introduced in 1999.
As per Bloomberg, New Zealand is set to announce its next decision on interest rates tomorrow.
No one is sure what the policymakers will do.
The economy annual growth of 0.2 per cent in the first quarter, unemployment rose to 4.7 per cent in the second quarter and inflation remains high at 3.3 per cent.
Furthermore, Australia has been recruiting and offering relocation packages in areas such as nursing, policing and teaching where they have skill shortages attracting New Zealanders, who do not need visas to work there.
At the same time, the New Zealand government has undertaken a significant downsizing of the country’s public service leaving many skilled worked looking for jobs.
With inputs from agencies