Why Are People Leaving NZ In Record Numbers

New Zealand is experiencing a record exodus of residents, driven by rising unemployment, high interest rates, and sluggish economic growth, according to recent government data.

Statistics New Zealand revealed that 131,200 people left the country in the year ending June 2024, marking the highest annual departure rate on record. A significant portion, nearly one-third, relocated to Australia.

While net migration remains positive, with more people arriving than leaving, economists predict a decline as New Zealand's softer economy makes it less attractive to foreign nationals.

Of those departing, 80,174 were New Zealand citizens—nearly double the number who left before the COVID-19 pandemic. Among them is Merrily Allen, who plans to move to Hobart, Tasmania, with her partner and daughter in early 2025.

"There are a lot of opportunities over there," said Allen, who works in dental administration. "I've seen many friends move to Australia for better work opportunities and a higher standard of living. It just seems like Australia has it together."

During the pandemic, many New Zealanders returned home, drawn by the government's effective handling of the crisis. However, the appeal of staying in New Zealand is fading for some, as the cost of living soars, job prospects dwindle, and interest rates remain high.

New Zealand's economy is currently under strain, following aggressive interest rate hikes by the central bank, which increased the cash rate by 521 basis points—the largest hike since the official cash rate was introduced in 1999. Economic growth stagnated at 0.2 percent in the first quarter, unemployment rose to 4.7 percent in the second quarter, and inflation remains elevated at 3.3 percent.

Meanwhile, Australia is actively recruiting skilled workers in fields like nursing, policing, and teaching, offering attractive relocation packages. With no visa required for New Zealanders to work in Australia, many are drawn to the opportunities across the Tasman, particularly as the New Zealand government downsizes its public service, leaving many skilled workers searching for employment.