New Zealand was once recognized around the world as a picturesque, progressive haven, but its fragile economy has forced many citizens to leave the country.
In the context of high prices, high interest rates and rising unemployment, The government’s latest estimate A record 131,200 people fled the country in the 12 months to June. Among them, there are about 80,200 citizens, an increase of nearly 70% Compared to the year ended June 2019before the outbreak.
Wilson Ong, 32, who works as a manager and buyer in New Zealand’s fashion retail industry, has seen many of his friends leave and is planning to join them.
“For me, the key factor is the quality of the work,” he said. “In New Zealand you feel like job opportunities and work experience are limited.”
It has long been common for New Zealanders, also known as kiwis, to seek experiences abroad, but the strict Covid-19 lockdown has postponed many travel plans.
However, one economist said Ong was also representative of the growing dissatisfaction among Millennials and Generation Z New Zealanders over the worsening economy.
More than 50 per cent of New Zealand immigrants were aged 20 to 39 in the year to June 2024, with those aged 25 to 29 making up the largest group, according to government statistics.
Shamubeel Eaqub, chief economist at the New Zealand Institute of Economic Research, said: “Over the past year and a half, the New Zealand economy has been slowing down and job losses are starting to appear, especially among the youngest generations.”
“I don’t expect these economic refugees to stop leaving New Zealand until the job market improves,” he said.
cost of living crisis
At the beginning of the epidemic, the New Zealand government implemented strict lockdown measures Mandatory 14 days in managed quarantine facilities For those arriving in the country, efforts are being made to eliminate the coronavirus.
Before managed quarantine was implemented, then-prime minister Jacinda Ardern said nearly 40,000 New Zealanders had returned home between Game 20 and April 9, 2020 , more than all hotel rooms in the country.
New Zealand was later praised for its swift response to the outbreak eliminated the virus Long-term presence, resulting in lower mortality.
Ong postponed plans to move to the UK in 2020 and decided to stay in New Zealand, which he considered a safer place to wait out the pandemic. He becomes a beneficiary of the Covid era wage subsidy Later he returned to work in Auckland, the country’s largest city.
But those subsidies have since dried up, and many small businesses that closed during the lockdown never reopened. At the same time, persistent high inflation has reduced the purchasing power of about 5 million consumers in the country.
Q6 2022, New Zealand annual Inflation rate reached 7.3%the highest level in more than 30 years. Although since then Cool down to 3.3% Still higher than the Reserve Bank of New Zealand’s mid-term target range Between 1% and 3%.
The country’s housing affordability— rent and mortgage loan Wages remain high compared with wages and housing affordability remains below long-term averages, according to CoreLogic.
Meanwhile, as the nation’s economy continues to slide into recession, Ong said wages in his industry have stagnated, making him feel like the economy is in worse shape than before the pandemic.
“I think one of the hallmarks of the economic downturn is the lack of opportunities to raise wages relative to the cost of living,” said Ong, who is currently looking for work in several countries.
CoreLogic New Zealand chief property economist Kelvin Davidson said in August that the proportion of income required to pay a mortgage had hovered between 53 per cent and 57 per cent over the past three years.
To put this into perspective, during the 2007-2008 global financial crisis, “mortgage payments reached 50% or more of income in only six quarters.”
low salary
Data shows that neighboring Australia is the most common destination for New Zealand immigrants.
Not only is the economy next door better, the Australian government has made it easy for New Zealanders to immigrate via a special visa. From July 2023, New Zealand citizens who have lived in Australia for at least four years can apply directly for citizenship.
The Australian government is also looking for New Zealand workers in the public sector. In recent months, Australia has reportedly taken out full-page ads in the New Zealand Herald promising “warmer days and better wages” to New Zealand police. local media.
the latest one Salary Guide A survey of New Zealand and Australia by recruitment firm Hays found jobs across a range of industries pay significantly more in Australia.
For example, a construction foreman or a tradesman in charge of a crew could earn more than 60 per cent more in Sydney than in Auckland, according to Hays data.
get worse before get better
Eaqub said there was little New Zealand could do to improve its economic situation in the short term, despite growing concerns about brain drain and the loss of skilled workers.
“I think (the economy) is going to get worse before it gets better,” he said, blaming part of the blame on New Zealand’s post-COVID-19 policy moves, such as high interest rates, that have limited consumer and Business expenses.
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