By Lucy Craymer
WELLINGTON (Reuters) – People are leaving New Zealand in record numbers, government statistics show, while unemployment rises, interest rates remain high and economic growth weakens.
Data released by Statistics New Zealand on Tuesday shows that 131,200 people left New Zealand in the year to June 2024, the highest number ever recorded for a one-year period, with around a third of them travelling to Australia.
While net migration (the number of people moving in minus those moving out) remains high, economists also expect it to decline as the number of foreigners wanting to move to New Zealand falls due to the weaker economy.
The data showed that 80,174 of those leaving were citizens, almost double the number of those leaving before the COVID-19 pandemic.
Merrily Allen is currently planning to move with her partner and 14-year-old daughter to Hobart on the Australian island state of Tasmania in early 2025
“There are a lot of opportunities there. They are always, always looking for people in my profession,” said Allen, who works in dental administration.
“I have a lot of friends who have gone (to Australia) … just because of the better job opportunities and better living conditions. Australia just seems to have it.”
During the pandemic, New Zealanders living abroad, encouraged by the then government’s handling of the outbreak, returned home in historically high numbers.
But for some, the love affair with the country of 5.3 million is over. Economists say New Zealanders frustrated by the cost of living, high interest rates and fewer job opportunities are looking to Australia, Britain and elsewhere.
New Zealand’s economy is in trouble after the central bank raised its benchmark interest rate by 521 basis points, the most aggressive tightening since the benchmark rate was introduced in 1999. Economic growth was 0.2% in the first quarter, unemployment rose to 4.7% in the second quarter and inflation remains high at 3.3%.
In addition, Australia has been recruiting staff in areas such as nursing, policing and teaching where there are skills shortages, and has offered relocation packages to attract New Zealanders who do not need visas to work there. At the same time, the New Zealand government has undertaken a significant downsizing of the country’s public service, leaving many skilled workers unemployed.
(Reporting by Lucy Craymer; Editing by Michael Perry)
