Panic in New Zealand as locals abandon country for 2 reasons

Residents are leaving New Zealand over the high cost of living. (Image: Getty)

A concerning number of New Zeleand residents are packing up and leaving for two key reasons. Statistics New Zealand revealed that a record-breaking 127,800 people left the country in the year leading up to November 2024, marking a 28% increase from the previous 12-month period. Over half of those leaving were New Zealand citizens, driven away by high living costs and a lack of job opportunities.

The country, with a population of just 5.3 million, has seen its economy falter in recent years as the central bank raised the official cash rate to curb soaring inflation. Senior economist at Westpac, Michael Gordon, noted that many come to New Zealand for work opportunities, but when these become scarce, they leave.

The mass exodus has sparked concerns for the job market. (Image: Getty)

He said: "It's about work opportunities, especially here (New Zealand) versus Australia. Australia's economy is still running reasonably strongly. There are more opportunities over there now so we are seeing quite high outflows of Kiwis."

Earlier this year, the government's tourism campaign, "Everyone Must Go", was met with ridicule amid the mass exodus.

Officials allocated 500,000 New Zealand dollars (£217,000) to the campaign, targeting visitors from neighbouring Australia, New Zealand's largest tourism market.

Like many nations, New Zealand has found it challenging to revive its tourism industry in the wake of the Covid-19 pandemic, with visitor numbers from Australia still only at 88% of what they were in 2019.

In the year leading up to February 2025, 69,100 people left the country – approximately 3% more than this time last year.

Around 56% of New Zealand emigrants – those planning to live abroad for a year or longer – choose Australia, where the average wage is 26% higher.

Experts are also expressing concern about the impact on the workforce, both now and in the future.

This is partly due to working-age individuals leaving New Zealand, exacerbated by stricter immigration rules implemented last year that have resulted in fewer people arriving on work visas.

Shamubeel Eaqub, chief economist at Simplicity, said: "This is a hollowing out of this demographic of mid-career workers, who in reality do the bulk of the work. That's the jaws of death closing, and then we have labour market problems."