Record Number of Citizens Leave New Zealand as Economy Slows

A record number of citizens have left New Zealand over the past year as the country’s economic has declined, government statistics have revealed.

Unemployment is rising, while interest rates remain high and the economy has slumped.

Data released by Statistics New Zealand on Tuesday showed that 131,200 people departed New Zealand in the year ended June 2024, provisionally the highest on record for an annual period. About a third of these people shifted to Australia.

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While net migration – the number of people arriving compared to the number leaving, remains at high levels, economists also expect this to wane as the number of foreign nationals wanting to shift to New Zealand falls due to the softer economy.

The data showed that 80,174 people departed. Most of them were citizens, and that number was almost double the figure seen leaving prior to the Covid-19 pandemic.

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

“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.”

During the pandemic, encouraged by the then government’s handling of the outbreak, New Zealanders living overseas returned home in historically high numbers.

High interest rates, few jobs

But the love affair with the country of 5.3 million, is over for some. 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.

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.

The economy saw annual growth of 0.2% in the first quarter, while unemployment rose to 4.7% in the second quarter and inflation remains high at 3.3%.

Meanwhile, Australia has been recruiting and offering relocation packages in areas such as nursing, policing and teaching where they have skill shortages.

This has attracted many Kiwis, as they’re known, who do not need visas to work there.

Another factor is that New Zealand’s new government has undertaken a significant downsizing of the country’s public service, which has left many skilled workers looking for jobs.