Find out how many people left the country over the 12 months to May
New Zealand’s easing of its strict border restrictions sparked a rush of new departures among Kiwis seeking fresh opportunities abroad, further worsening skills shortages in the labour market.
Read more: New Zealand economy hit by labour shortages
New government data revealed that a net 10,674 people left the country over the 12 months to May, extending a drain experienced over the past year. The exodus comes as New Zealand struggles to fill jobs, with the number of foreign workers remaining very low, and the economy close to maximum employment.
The issue became somewhat politically contentious when Australian Prime Minister Anthony Albanese recently deflected questions about health services in his country poaching New Zealand nurses to resolve their own critical nurse shortage, Reuters reported.
In the two years from when the COVID-19 pandemic broke out, New Zealand ran some of the world’s toughest border controls in a bid to keep the deadly virus out of the country. And although there were no restrictions on leaving the country, possible delays in returning discouraged Kiwis from heading abroad.
Kiwis have traditionally gone offshore in their 20s and early 30s for travel and leisure, largely in Europe, with Australia another popular destination for Kiwis seeking job opportunities or warmer weather.
Kiwibank’s Jarrod Kerr predicted annual net emigration to be around 20,000 by the end of this year, adding to wage and inflation pressures as workers seek new opportunities and experiences abroad. By contrast, a net 72,588 people moved to New Zealand in 2019, prior to the pandemic.
Read next: Kiwibank expects net 20,000 people to leave NZ this year
“Kiwis who would have otherwise left over the last two and a half years are leaving now and we expect that to continue,” Kerr said. “It’s the Kiwi way.”
That would add further pressure to the country’s already tight employment market.
“Businesses are really struggling to find workers, and we’re losing workers in their prime,” Kerr said.
The Kiwibank chief economist expects things could improve next year with a pickup in migrants from places like India, China, and South Africa.
Recent consumer research from Australian firm MYOB found that around 4% of Kiwis were planning to move overseas to live and work, citing expectations of better salary, improved quality of living, or for a particular lifestyle, Reuters reported.
“This has the makings of a real crisis in the local jobs sector, with the lack of available employees making it even more challenging for many businesses to operate or expand to meet local demand,” said Felicity Brown, MYOB head of employee services.
