New Zealand Sees Record Emigration Amid Economic Struggles

By Lucy Craymer

WELLINGTON (Reuters) – People leaving New Zealand hit record levels in the year to November 2024, indicating further weakness in the country’s economy, which entered a technical recession in the third quarter.

Data from Statistics New Zealand, released on Thursday, revealed that 127,800 people left the Pacific nation in the year to November, representing a 28% increase from the previous year. This provisional figure marks the highest number of people leaving New Zealand in an annual period ever, as per the statistics bureau.

Of those departing, more than 50% were New Zealand citizens.

New Zealand, with a population of just 5.3 million, has faced economic difficulties over the past couple of years, particularly as the central bank raised the official cash rate to combat historically high inflation.

Michael Gordon, a senior economist at Westpac, explained that many individuals move to New Zealand for work opportunities, but when these diminish, they tend to leave. He noted, “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.”

Despite the high number of departures, incoming migration continues to balance the situation. Statistics New Zealand reported that net migration—defined as the difference between people moving to New Zealand permanently and those leaving—was 30,600 for the year ending November 2024. Net migration peaked at 135,700 in the year ending October 2023.

Gordon emphasized that while net migration has returned to historical averages, it would ultimately support New Zealand’s economy over the long term. He commented, “It’s something to keep in mind, that for a big chunk of the world, New Zealand is an attractive place to live, but also for us (New Zealanders), there are also places that look more attractive: Australia, the U.S., or the U.K.”