New Zealand is witnessing a record-breaking exodus as the country's economic challenges continue to mount, as per a report by news agency Reuters. According to government statistics released on Tuesday, 131,200 people left New Zealand in the year ending June 2024, marking the highest annual departure rate on record. Approximately one-third of these emigrants headed to Australia.
Although net migration — calculated as the number of arrivals minus departures — remains high, economists predict a decline as the allure of New Zealand fades for foreign nationals amid a weakening economy.
Statistics New Zealand's data reveals that 80,174 of those departing were New Zealand citizens, nearly doubling pre-pandemic figures. Among them is Merrily Allen, who, along with her partner and 14-year-old daughter, plans to relocate to Hobart, Tasmania, in early 2025. Allen, who works in dental administration, cited better job opportunities as the primary reason for the move.
"There is a lot of opportunity over there. They're always, always looking for people in my profession," Allen said. "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 Covid-19 pandemic, New Zealand saw a surge in returning citizens, drawn by the government’s effective handling of the outbreak. However, that trend appears to be reversing as frustrations with the high cost of living, soaring interest rates, and limited job prospects push many to seek better opportunities abroad, particularly in Australia and the UK.
New Zealand's economy is grappling with the impact of aggressive monetary tightening by the central bank, which raised cash rates by 521 basis points — the steepest increase since the official cash rate was introduced in 1999. The country recorded an annual economic growth of just 0.2 per cent in the first quarter of 2024, while unemployment rose to 4.7 per cent in the second quarter. Inflation remains stubbornly high at 3.3 per cent.
Meanwhile, Australia has been actively recruiting skilled workers, offering relocation packages in sectors like nursing, policing, and teaching — areas where they face shortages. The New Zealand government's significant downsizing of the public service has further exacerbated the situation, leaving many skilled workers jobless and seeking opportunities elsewhere.