13-8-2024 (WELLINGTON) The land of the long white cloud is experiencing a significant shift in its population dynamics as record numbers of New Zealanders seek greener pastures abroad. Recent data from Statistics New Zealand paints a stark picture of a nation grappling with economic challenges that are prompting its citizens to look elsewhere for opportunities.
In the year ending June 2024, a staggering 131,200 individuals bid farewell to New Zealand’s shores, marking the highest recorded annual departure figure in the country’s history. Of particular note is the fact that nearly one-third of these departures were bound for Australia, underscoring the enduring allure of the trans-Tasman neighbour.
While net migration remains positive due to incoming foreign nationals, economists predict a potential decline in this trend as New Zealand’s economic struggles make it a less attractive destination for overseas talent.
The exodus of New Zealand citizens has nearly doubled compared to pre-pandemic levels, with 80,174 Kiwis choosing to leave in the past year. This dramatic increase reflects growing disillusionment with the country’s economic climate.
One such soon-to-be-expat is Merrily Allen, who plans to relocate with her family to Hobart, Tasmania in early 2025. Allen, who works in dental administration, cites better career prospects and living conditions as key motivators for the move. “There is a lot of opportunity over there. They’re always, always looking for people in my profession,” she remarks, echoing a sentiment shared by many of her compatriots who have already made the leap across the Tasman.
The current situation stands in stark contrast to the pandemic era when New Zealand’s handling of the outbreak drew many overseas Kiwis back home. However, the honeymoon period appears to be over as economic realities set in.
New Zealand’s economy is currently navigating turbulent waters. The Reserve Bank’s aggressive monetary tightening campaign, which saw the official cash rate hiked by 521 basis points—the most substantial increase since its introduction in 1999—has left its mark. Economic growth has slowed to a crawl, with annual growth at a mere 0.2% in the first quarter. Unemployment has risen to 4.7%, while inflation remains stubbornly high at 3.3%.
Adding to the economic pressures, the New Zealand government has implemented significant downsizing in the public sector, leaving many skilled workers in search of new opportunities. Meanwhile, Australia has been actively recruiting in sectors facing skill shortages, such as nursing, policing, and teaching, offering relocation packages that prove particularly attractive to New Zealanders who can work there without visa restrictions.
