A record number of people left New Zealand in the 12 months leading up to November 2024, highlighting the challenges facing the country’s struggling economy, which entered a technical recession in the third quarter.
Statistics New Zealand reported on Thursday that record 127,800 individuals departed the country during this period, a 28% increase compared to the previous year and the highest annual figure on record. Over half of those leaving were New Zealand citizens.
With a population of just 5.3 million, New Zealand has been grappling with economic difficulties in recent years, partly due to the central bank’s aggressive interest rate hikes aimed at curbing historically high inflation.
Michael Gordon, a senior economist at Westpac, attributed the departures to a lack of work opportunities in New Zealand compared to neighboring Australia. “It’s about work opportunities, especially here versus Australia. Australia’s economy is still running reasonably strongly,” Gordon said. “There are more opportunities over there now, so we are seeing quite high outflows of Kiwis.”
Despite the high emigration rate, inward migration continues to provide some balance. Net migration—the number of people moving to New Zealand permanently minus those leaving—stood at 30,600 for the same 12-month period. This is a significant drop from the peak of 135,700 recorded in the 12 months to October 2023.
Gordon noted that net migration has now returned to historic averages and is likely to contribute positively to the economy in the long term. “For a big chunk of the world, New Zealand is an attractive place to live. But for us, other destinations like Australia, the U.S., or the UK can seem more appealing,” he said.
The rising emigration trend reflects broader economic challenges facing New Zealand, including slower growth, limited job prospects, and the ongoing impact of high inflation. Analysts suggest that the outflow of talent, especially skilled workers, could exacerbate labor shortages in key sectors and hinder long-term economic recovery.
While Australia remains a top destination for departing Kiwis due to its stronger economy and better job opportunities, the trend also highlights global competition for talent. Countries like the U.S. and the UK, with larger economies and diverse career opportunities, continue to attract skilled migrants from smaller nations like New Zealand.
The government is under increasing pressure to address these issues. Policymakers are exploring ways to stimulate the domestic economy, improve employment prospects, and make New Zealand more attractive for residents and migrants alike. Measures under consideration include targeted investments in key industries, reforms to boost productivity, and incentives to retain skilled workers.
Despite the challenges, experts remain cautiously optimistic about New Zealand’s long-term prospects. The country’s natural beauty, high quality of life, and reputation for safety and stability continue to make it a desirable destination for migrants globally. However, reversing the current emigration trend will likely require sustained efforts to address the structural weaknesses in the economy and create more competitive opportunities for both citizens and newcomers.
