How fewer jobs, high cost of living are driving Kiwis out of New Zealand
The country in the year ending June 2024 recorded 131,200 emigrations with a majority relocating to neighbouring Australia
New Zealand, whose cities were once considered among the most livable destinations in the world, is witnessing a fast exit of residents due to rising unemployment, weak economic growth and high interest rates.
Reuters quoting statistics released by Statistics New Zealand on Tuesday (August 13), said that a staggering 131,200 people left the country in the year ending June 2024, with around 75 per cent of them migrating to neighbouring Australia.
The report said that 80,174 of the departees were citizens of New Zealand. The migration is said to be double the number of that witnessed before the COVID-19 pandemic.
Liveabiliy factor
Interestingly, New Zealand cities like Auckland and Wellington were adjudged among the world’s most livable cities by the Global Liveability Index last year. While Auckland shared its rank with Osaka (Japan) as the world’s 10th most liveable city, Wellington came 23rd, jumping 35 places from the rankings in 2022.
While, immigration, as per the government report, still remains high in the country, economists say it may slump when the country ceases being an attractive destination for immigrants owing to its sluggish economy.
Post pandemic return and emigration
New Zealand which had sealed its borders during the COVID-19 pandemic, had allowed a phased entry of both tourists and residents into the country in 2022.
However, the latest slew of economic downturns have discouraged many locals to look for greener pastures, triggering a fresh wave of emigration.
Central bank slashes lending rates
As part of its efforts to rein in inflation and bring it within the 1-3 per cent target, the central bank of New Zealand on Wednesday cut interest rates by a quarter percentage point to 5.25 per cent.
“We are confident that inflation is back within its target band and we can commence our renormalisation of policy rates,” Governor of the Reserve Bank of New Zealand, Adrian Orr said.
The central bank had earlier hiked the interest rates by 5.21, the highest since 1999.
Explaining its decision, the Central Bank Committee said that a broad range of indicators were suggesting that the economy was contracting faster than anticipated while the “downside risks to output and employment that were highlighted in July” had become more apparent.
Australia’s gain
Irked by the rising cost of living, and lack of jobs, many New Zealanders are said to be moving to Australia, UK and other countries.
To cater to the migrating population, Australia has been offering relocation packages for those opting to work in sectors such as nursing, policing and teaching, where there is a labour shortage.
New Zealand, on the other hand, has been carrying out job cuts in the public sector, rendering many skilled workers jobless.