Economic refugees flee from New Zealand as cost-of-living crisis deepens

New Delhi

As the cost-of-living crisis intensifies, New Zealand is witnessing a significant exodus of its citizens, with over 131,200 Kiwis leaving for foreign shores in the past year alone. This mass migration, which marks a 70 percent increase since June 2019, stems from a perfect storm of soaring prices, elevated interest rates, and a shortage of quality employment opportunities as detailed in a CNBC report. 

The growing trend is particularly alarming for younger generations, as over half of the emigrants are aged between 20 and 39. For instance, Wilson Ong, a 32-year-old manager in the fashion retail industry, expressed his concerns about the limited job market back home. He stated, "In New Zealand, it feels like the job market limits your opportunities and the experiences you can gain."

Persistent inflation, high cost of living is a serious challenge for the economy

The situation has worsened due to the high cost of living, which has seen inflation rates spike to over 7.3 per cent at their peak, affecting the purchasing power of many New Zealanders. Although the rate has decreased to 3.3 per cent as of June 2024, it still remains above the Reserve Bank's target of 1 to 3 per cent. This economic pressure has prompted many citizens to seek a better quality of life abroad.

Australasia remains a prime destination for New Zealanders seeking greener pastures. The Australian economy, regarded as more robust, actively recruits Kiwi workers through a special visa programme that eases migration. Many Kiwis are drawn not only by the better job prospects but also by significantly higher salary offers. Reports suggest that a construction foreman in Sydney can earn over 60 percent more than their Auckland counterparts.

Economic experts, including Shamubeel Eaqub, warn that without a swift improvement in the job market and economic conditions, the flow of New Zealand's economic refugees is likely to continue. He noted, "I believe the economy will worsen before it improves, attributing many issues to post-Covid policies, including the sustained high interest rates."

This shift in outlook calls for urgent government intervention to rejuvenate the economy and retain its talent. Without strategic policy changes and a renewed focus on job creation, New Zealand risks losing its young professionals to countries promising greater opportunities and stability.

The current emigration trend reflects a broader narrative of discontent among New Zealand's youth, who feel increasingly trapped by economic circumstances. As the country grapples with these challenges, the government faces mounting pressure to address the underlying issues driving its citizens abroad.