Recent government statistics reveal that a record number of people are leaving New Zealand due to rising unemployment, weak economic growth, and high interest rates. According to Reuters, in the year ending June 2024, a provisional total of 131,200 departures was recorded, with the majority of people moving to Australia.
Statistics New Zealand disclosed on Tuesday that around 75% of those who left were moving to Australia.Among the total, 80,174 were New Zealand citizens, nearly double the pre-Covid numbers.
The influx of immigrants to New Zealand remains high, but economists predict these figures will decline owing to the country’s sluggish economy. During the pandemic, numerous New Zealanders returned home due to effective pandemic management in the country.
On Wednesday, the central bank reduced interest rates by 25 basis points to 5.25 per cent as inflation neared its 1 per cent to 3 per cent target range. “We are confident that inflation is back within its target band and we can commence our renormalisation of policy interest rates,” stated Governor Adrian Orr at a news conference.
He emphasised the committee’s growing confidence in moving forward and further said, “It’s been about building the committee’s confidence to get moving, and we’re at that point now.” The central bank previously increased rates by a record 5.21 per cent, the highest level since introducing the mechanism in 1999.
The Central Bank Committee highlighted that domestic economic activity had weakened further in July. “With a broad range of indicators suggesting the economy is contracting faster than anticipated, the downside risks to output and employment that were highlighted in July have become more apparent,” the committee noted.
Furthermore, New Zealanders are frustrated by the rising cost of living and diminishing job opportunities. Many are relocating to countries like Australia and the UK.
Australia is attracting job seekers with relocation packages in sectors like nursing, policing, and teaching, where there are skill shortages. Conversely, New Zealand is reducing public sector jobs, leaving many skilled workers unemployed.
Statistics New Zealand disclosed on Tuesday that around 75% of those who left were moving to Australia.Among the total, 80,174 were New Zealand citizens, nearly double the pre-Covid numbers.
The influx of immigrants to New Zealand remains high, but economists predict these figures will decline owing to the country’s sluggish economy. During the pandemic, numerous New Zealanders returned home due to effective pandemic management in the country.
On Wednesday, the central bank reduced interest rates by 25 basis points to 5.25 per cent as inflation neared its 1 per cent to 3 per cent target range. “We are confident that inflation is back within its target band and we can commence our renormalisation of policy interest rates,” stated Governor Adrian Orr at a news conference.
He emphasised the committee’s growing confidence in moving forward and further said, “It’s been about building the committee’s confidence to get moving, and we’re at that point now.” The central bank previously increased rates by a record 5.21 per cent, the highest level since introducing the mechanism in 1999.
The Central Bank Committee highlighted that domestic economic activity had weakened further in July. “With a broad range of indicators suggesting the economy is contracting faster than anticipated, the downside risks to output and employment that were highlighted in July have become more apparent,” the committee noted.
Furthermore, New Zealanders are frustrated by the rising cost of living and diminishing job opportunities. Many are relocating to countries like Australia and the UK.
Australia is attracting job seekers with relocation packages in sectors like nursing, policing, and teaching, where there are skill shortages. Conversely, New Zealand is reducing public sector jobs, leaving many skilled workers unemployed.
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