NZ witness record exodus amid cost of living pressures

New Zealand is experiencing a record exodus of its citizens, with many relocating to Australia, according to new data. Stats NZ’s provisional international migration statistics reveal an estimated exodus at 130,600 migrant departures in the year up to April, marking the highest annual figure recorded.

Of these long-term departures, around 81,200 were New Zealand citizens, representing a 41% increase from the previous year and surpassing the prior record of 72,400 in 2012. With only 24,800 New Zealand citizens returning during this period, the net migration loss reached 56,500, exceeding the previous high of 44,400 in 2012.

Overall, there was a net migration gain of 98,500 as 154,900 non-New Zealand citizens entered the country, with the largest groups coming from India, the Philippines, and China. Stats NZ also reported that 53% of New Zealand citizen departures in the year to September 2023 were to Australia. Many New Zealanders, particularly young professionals and graduates, have cited high living costs and job shortages as reasons for leaving, with overseas travel considered a rite of passage for many after finishing education.

Stats NZ doesn’t collect specific reasons from New Zealanders about their departures but notes that migration trends typically result from various factors, including economic and labor market conditions relative to other countries. Tehseen Islam, Stats NZ’s population indicators manager, highlighted this combination of influences. Brad Olsen, Infometrics principal economist, identified two primary reasons for the migration: young Kiwis seeking delayed overseas experiences and a significant number moving to Australia for better opportunities, with Australian employers offering higher pay and improved working conditions.

Olsen noted that while it’s common for New Zealanders to leave, convincing them to return will be challenging if issues like housing affordability and job prospects persist. This ‘brain drain’ could have serious implications as the population ages, emphasizing the need to retain young talent to drive innovation and productivity. Without attracting young talent back, the challenge of maintaining a dynamic economy becomes significantly more difficult.

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