People are leaving New Zealand in record numbers as the economy slumps

Government figures show people are leaving New Zealand in record numbers amid rising unemployment, high interest rates and anemic economic growth.

Data released by Statistics New Zealand on Tuesday showed 131,200 people left New Zealand in the year ending June 2024, the highest number in any year so far. A third of this went to Australia.

Net migration, minus the number of people leaving, is higher, and economists expect it to decline as the number of foreigners seeking to move to New Zealand declines due to the weak economy.

The data shows that 80,174 of those who left were citizens, more than double the number who left before the COVID-19 pandemic.

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

“There’s a lot of opportunity out there, and they’re always looking for people in my profession,” said Allen, who works in dental administration.

“I have a lot of friends who moved to Australia… for better job opportunities and a better life.

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

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 flocking to Australia, the United Kingdom and other countries.

New Zealand’s economy has struggled as the central bank has raised interest rates by 521 basis points since the introduction of the official cash rate in 1999. The economy grew at an annual rate of 0.2% in the first quarter, while unemployment rose. 4.7% in the second quarter and inflation at 3.3%.

In addition, Australia has hired New Zealanders who do not need a visa to work there, and has offered them relocation packages in skills shortages such as nursing, policing and education. At the same time, the New Zealand government has significantly reduced the civil service, leaving many skilled workers looking for work.