Is It Really an Immigrant Paradise? ... Young People Struggling to Make a Living 'Leaving New Zealand'

New Zealand Accepting Immigrants, High Citizen Outflow
40% Are Young People... Rising Unemployment and High Inflation
"Leaving Abroad Is a Rite of Passage," Most Head to Australia

In New Zealand, once known as a 'paradise for immigrants' due to its large immigrant population, a record high of 130,000 people left the country over the past year. On the 13th (local time), media outlets including Reuters reported, "According to Statistics New Zealand, as of the end of June, 131,223 people moved overseas from New Zealand in the previous year, the highest number since the related statistics began."

[Photo by New Zealand Tourism Board]

Among them, 80,174 were New Zealand citizens, and about 40% of these were young people aged between 18 and 30. One in three chose Australia as their destination.

Since the COVID-19 pandemic eased at the end of 2022, New Zealand reopened its borders and encouraged immigration of foreign workers, leading to a rapid increase in net migration. As of October last year, the annual net migration (arrivals minus departures) reached approximately 140,000. However, with the recent surge in people leaving New Zealand, the annual net migration has dropped to 73,270, about half the previous level.

The reasons cited for young people leaving include rising unemployment, high interest rates, and expensive housing and living costs. According to the International Monetary Fund (IMF), New Zealand's economic growth rate was only 0.6% last year and is expected to be just 1.0% this year. Additionally, the unemployment rate in the second quarter reached 4.7%, and the benchmark interest rate stands at 5.5%. The right-wing coalition government, which took power last year, is restructuring public sector jobs to improve fiscal soundness. Brad Olsen, chief economist at economic analysis firm Infometrics, said, "For New Zealand youth, going overseas after graduation is considered a rite of passage," adding, "If this trend continues, it could become a social problem due to 'brain drain' and population aging."

There is also analysis suggesting that their move to Australia implies a de facto permanent migration. The average weekly income in Australia is about 30% higher than in New Zealand, and Australian companies are increasing recruitment of New Zealand youth by offering higher wages and better working conditions. Michael Gordon, senior economist at Australian bank Westpac, forecasted, "As the New Zealand economy cools, more New Zealanders will head to the relatively stronger Australian job market."