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

A representative image of shoppers walking into a shopping mall in Christchurch Photo credit: AP

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 1,31,200 people left New Zealand in the year ending June 2024, the highest ever recorded for an annual period. A third of these went to Australia.

While net migration, minus the number of people leaving, remains high, economists expect it to slow as the number of foreign nationals seeking to move to New Zealand declines due to a softer economy.

Data showed that 80,174 evacuees were citizens, more than double the number of evacuees before the COVID-19 pandemic.

Read More: New Zealand tightens visa rules amid near-record migration

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

„There’s a lot of opportunity out there. They’re always, always looking for people in my profession,” said Allen, who works in dental management.

File photo of the entrance to the Reserve Bank of New Zealand in Wellington | Photo credit: Reuters

„I’ve got a lot of friends who have gone (to Australia).

Love affair will decrease

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

But the love affair with the country of 5.3 million is over for some. Economists say New Zealanders frustrated by the cost of living, high interest rates and fewer job opportunities are heading to Australia, the UK and other countries.

New Zealand’s economy has been struggling after the central bank raised cash rates by 521 basis points since the official cash rate was introduced in 1999. Economic annual growth was 0.2% in the first quarter, and unemployment rose to 4.7% in the second quarter. quarter and inflation rose to 3.3%.

Also, Australia has been relocating to places where there is a shortage of skills to attract New Zealanders who do not need a visa to work in sectors such as nursing, policing and teaching. At the same time, the New Zealand government has significantly downsized the country’s public service, leaving many skilled workers unemployed.