Record number of people leaving New Zealand due to weak economy

Record numbers of people are leaving New Zealand as unemployment rises, interest rates remain high and economic growth remains weak, government statistics show.

Data released by Statistics New Zealand on Tuesday showed 131,200 people left New Zealand in the year to June 2024, the highest number ever recorded for an annual period. About a third of them went to Australia.

While net migration, the number of people arriving minus the number leaving, remains at high levels, economists also expect it to decline as fewer foreign nationals want to settle in New Zealand due to the weak economy.

The data shows that 80,174 of the departures were citizens, nearly double the number of departures recorded before the Covid-19 pandemic.

Merrilee Allen is currently planning to move with her partner and 14-year-old daughter to Hobart, in the Australian island state of Tasmania, in early 2025.

“There are a lot of opportunities out there,” said Ms. Allen, who works in dental management. “They are always looking for people in my profession.”

“I have a lot of friends who went (to Australia)… simply because there are better job opportunities and better living conditions. Australia seems to have it all figured out.”

During the pandemic, encouraged by the government's handling of the outbreak, New Zealanders living overseas have returned home in historically large numbers.

But for some, the love affair with this country of 5.3 million people is over. Economists say New Zealanders frustrated by the cost of living, high interest rates and lack of job opportunities are heading to Australia, the United Kingdom and elsewhere.

New Zealand's economy is struggling after the central bank raised interest rates by 521 basis points in its sharpest tightening since the introduction of the official cash rate in 1999. The economy grew by an annualized 0.2% in the first quarter, unemployment reached 4.7% in the second quarter and inflation remains high at 3.3%.

In addition, Australia has been recruiting and offering resettlement in areas such as nursing, policing and teaching, where skilled workers are in short supply, attracting New Zealanders, who do not need a visa to work in the country. At the same time, the New Zealand government has moved to significantly reduce the size of the country’s civil service, leaving many skilled workers looking for work.