New Zealand is grappling with unprecedented levels of emigration, with a record 127,800 people leaving the country in the year leading up to November 2024. This marks a 28% increase from the previous year, with over 50% of those departing being New Zealand citizens [e66f2a0d]. The country, which has a population of approximately 5.3 million, has entered a technical recession as of the third quarter of 2024, exacerbated by high inflation that has prompted the central bank to raise official cash rates [e66f2a0d].
In response to these economic challenges, New Zealand has relaxed its visitor visa requirements as of January 27, 2025, aiming to attract remote workers. The new policy allows foreigners to work for overseas employers for up to nine months, targeting skilled tech workers from the U.S. and East Asia [305bdc3]. Finance Minister Nicola Willis stated that this initiative is designed to position New Zealand as a welcoming destination for global talent, hoping to boost local business spending [305bdc3].
The economic downturn has made job opportunities in Australia increasingly appealing to New Zealanders. Michael Gordon, a senior economist at Westpac, noted that many citizens are drawn to the prospect of better employment conditions across the Tasman Sea [e66f2a0d]. Despite the outflow, New Zealand recorded a net migration gain of 30,600 during the same period, a significant drop from a peak of 135,700 in October 2023 [e66f2a0d]. Long-term net migration is anticipated to help support the economy, but the immediate effects of the mass exodus are concerning for the labor market and skill availability in New Zealand [e66f2a0d].
The situation is compounded by a cost-of-living crisis, with many young New Zealanders opting to travel abroad for better opportunities. In fact, half of the recent emigrants have relocated to Australia, where they are attracted by higher wages and improved working conditions [e66f2a0d]. The exodus is particularly pronounced among individuals aged 25 to 44, a demographic that is not being replenished by incoming migrants of similar age [e66f2a0d].
In 2023, New Zealand saw a net migration loss of 27,011 when accounting for Australians moving to New Zealand, an 85% increase from the previous year [e66f2a0d]. The average weekly earnings in Australia are approximately A$1,888, nearly 30% higher than in New Zealand, further incentivizing the move [e66f2a0d].
As the economic landscape continues to shift, the implications of this brain drain are significant, particularly as New Zealand faces challenges in replacing the skilled workers who are leaving [e66f2a0d]. The ongoing recession and rising costs of living are likely to keep the trend of emigration high unless substantial changes occur in the domestic job market and economic conditions [e66f2a0d]. The new visa policy for remote workers may provide a partial remedy by attracting talent that can contribute to the local economy, particularly in the tech sector [305bdc3].