We are grappling with a growing exodus of Kiwi citizens, particularly to Australia, where higher wages and better job opportunities are proving irresistible. In the year leading up to March 2024, the country saw a net loss of 52,500 citizens—the first time it has ever exceeded 50,000—and this is necessarily impacting both our economy and the job market.
The driving forces behind this migration are clear: New Zealand’s economy is struggling with stagnant wages, high living costs, and limited job opportunities. These challenges have become too much for many, prompting more and more Kiwis to seek greener pastures across the pond or further afield in the UK. The numbers are telling: in 2023 alone, 27,000 New Zealanders relocated to Australia, drawn by the promise of higher salaries and better living conditions. For instance, a Hamilton teacher reported that she could achieve a $31,000 salary increase “just by catching a flight” to Melbourne.
This trend is not without significant consequences. The loss of skilled workers is particularly acute in sectors like healthcare, IT, and construction, where the departure of experienced professionals is creating severe skill shortages. In response, New Zealand has become increasingly reliant on temporary migrants to fill these gaps, but this solution is fraught with challenges. Essential skills visas are increasingly focused on lower-skilled roles, so the influx of migrant workers does not fully compensate for the loss of highly skilled citizens. Further, there are concerns about poor treatment and exploitation of migration workers that need to be addressed.
The effects of this migration trend are being felt unevenly across the country. The big cities are struggling with housing affordability, while rural areas face labour shortages in agriculture. Industries such as horticulture and dairy farming are now heavily dependent on temporary migrant labour, which, while crucial, does not address the broader economic issues at play.
As more Kiwis leave, the long-term impact on New Zealand’s economy could be profound. The loss of human capital is likely to slow economic growth, hinder innovation, and lead to an aging population. Moreover, the departure of young, educated New Zealanders may significantly drain our nation’s future potential.
Addressing these challenges will require a concerted effort from policymakers. Initiatives to improve domestic job opportunities, increase wages, and reduce the cost of living are essential. Additionally, policies aimed at encouraging Kiwis to return home could help mitigate the impact of this migration trend.
If these trends continue unchecked, New Zealand could face a future where its economic and social fabric is significantly altered, with fewer skilled workers and a more strained economy. We must act with urgency to ensure that New Zealand remains a place where its citizens can thrive and is capable of offering competitive wages.