New Zealand’s economy entered 2025 in a fragile state. Statistics New Zealand reported that 71,800 citizens departed the country in the year to June 2025 – the highest level since 2012. Many of those leaving are young people seeking better prospects overseas as the local job market falters. Unemployment climbed to 5.2% in the June quarter and labour participation fell to its lowest level since 2021.
This migration surge coincides with one of the worst economic downturns in decades. Analysts attribute the slump to low productivity growth and policy missteps that have constrained business investment. The Reserve Bank cut its cash rate by 225 basis points since August 2024 to stimulate activity, but growth remains weak.
Reasons for the 2025 migration surge:
- High unemployment and fewer job opportunities.
- Rising cost of living, particularly housing and food.
- Higher salaries and career p
- Before making the decision to move abroad, read our guide on retirement savings for Kiwis to get your finances in order.
Why are New Zealanders leaving? Rising living costs, limited job opportunities and housing affordability are key factors. Young adults face high rent and mortgage costs relative to wages. Many are relocating to Australia, Britain or the United States in search of better salaries and career progression. Employers in these countries actively recruit skilled Kiwis, taking advantage of favourable visa schemes.
What does this mean for the future? Demographers warn that sustained outward migration could exacerbate skills shortages and dampen domestic demand. Policymakers need to focus on boosting productivity, improving infrastructure and creating opportunities for young professionals to stay. If you’re considering leaving, weigh the benefits against the emotional cost of being away from home. For those staying, demand for skilled workers could translate into better bargaining power.