New Zealand faces record exodus as net immigration drops sharply

Key Takeaways

• Long-term departures reached 123,256 in March 2025, with 70,000 citizens leaving and nearly 60% going to Australia.
• Net immigration dropped by over 74%, to 26,400, compared to 100,400 the year before, mostly due to fewer arrivals.
• Economic pressures and slow residency processing drive both citizens and skilled immigrants to seek better opportunities abroad.

A record number of people are leaving New Zealand, leading to a sharp fall in net immigration and deep worries about the country’s future growth. A closer look at the numbers, and the reasons behind them, shows just how quickly things have changed—and what it could mean for all who live and work in New Zealand.

A Year of Big Changes in Migration

In the twelve months leading up to March 2025, New Zealand saw some of the highest population movements in its history. According to official Stats NZ data, more than 123,256 people left the country long-term, which sets a new record for annual departures. Of this group, around 70,000 were New Zealand citizens, and nearly 60% of them headed to Australia. In comparison, only about 26,400 more people arrived than left, which means net immigration dropped by over 74% compared to the year before, which saw 100,400 net arrivals.

This trend has been building for months. The number of people leaving keeps going up, while not as many people are coming to live in New Zealand as before. The numbers tell a clear story: while last year saw about 207,000 people arrive in the country, this year it’s down to just under 150,000. Meanwhile, the number of people packing their bags and leaving long-term jumped from about 107,000 to well over 123,000.

Understanding the Record Exodus

Why are so many people leaving? The answer isn’t simple—several things are happening at once. Money troubles stand out as probably the biggest reason. Many New Zealanders, as well as immigrants living in the country, are finding it harder than ever to cover basic costs. Prices for food and housing keep climbing, but wages are not keeping pace. This stretch on household budgets is pushing people to look for a better life somewhere else.

Australia remains the most popular choice, especially for citizens. The promise of higher pay, a bigger job market, and long-standing connections make it an easy option. Many employers in Australia are actively offering jobs to New Zealanders, especially as both countries face shortages in different types of workers. These real differences in pay and opportunity draw people away from New Zealand’s more limited choices.

But it’s not only New Zealanders who are heading for the exits. Immigrants, especially those with special skills or who once felt at home in the country, are also leaving at higher rates. Some mention that wage growth in New Zealand is slow compared to what they could earn in countries like Australia or Canada. Others point to delays or problems in getting long-term visas or residency. Uncertainty about their ability to stay, or a sense that better choices exist abroad, all play a part.

A Look at the Numbers

• In the year ending March 2025, long-term departures reached 123,256, the highest ever.
• Around 70,000 were New Zealand citizens, and almost 60% of them moved to Australia.
• Net immigration gain was 26,400, down sharply from 100,400 the year before.
• Net loss of citizens was around 44,900.

The main drop comes from fewer people arriving, particularly from countries that have long sent many migrants, like India and the Philippines. Their arrival numbers fell sharply, while their departure numbers also rose. The net gain from non-New Zealand migrants is now +71,200, which is lower than last year but still higher than the years before the pandemic.

Economic Pressures Are Key

Many who leave say that the cost of living in New Zealand is simply too high. Wages aren’t rising as quickly as prices for things like food, rent, and fuel. As each year passes, more families and individuals find it hard to make ends meet. Even if someone manages to find work, the gap between what they earn and what life costs keeps growing.

At the same time, other countries—especially Australia—seem more welcoming. Employers there are hungry for new workers, pay rates are higher, and many feel they can get ahead faster. The fact that New Zealand citizens have special rights to live and work in Australia makes the move even simpler.

Problems for Immigrants

Recent immigrants to New Zealand, including people with needed skills and experience, face a different but related set of challenges. Many hoped to settle long-term, but issues with visa rules and slow decision-making about residence applications have created uncertainty. Some fear that changes to immigration policy might make it harder for them to stay in the country. With jobs in places like Australia and Canada often paying more and offering better long-term stability, many don’t see a reason to wait.

VisaVerge.com’s analysis highlights that some immigrants have grown tired of the delays and uncertainties. While New Zealand once drew skilled migrants with its lifestyle and work opportunities, some now view the country as less attractive due to these stumbling blocks.

Impact on the Population

This record exodus and fast drop in net immigration mean New Zealand’s population growth is slowing down quickly. The country’s growth, which had bounced back after the pandemic thanks to high numbers of arrivals, is now stalling as more people leave or stay away.

• Migrant arrivals: Down from around 207,000 last year to just under 150,000.
• Departures: Up from about 107,000 to over 123,000.

The drop is especially noticeable among citizens leaving for Australia, but it is also seen for immigrants from traditional source countries like India and the Philippines. Their arrivals are shrinking while departures are moving upwards. For policymakers, these trends signal that the country may soon see even lower population growth rates.

Concerns About the “Brain Drain”

One big worry for New Zealand is how to cope with the loss of skilled workers—a problem often called “brain drain.” Highly trained people, like engineers, doctors, teachers, and tech workers, are among those choosing to move overseas. Losing too many skilled workers at once can hurt the country’s economy, slow innovation, and make it harder for businesses and public services to keep running smoothly.

Economists say that if low net immigration stays around, New Zealand could face shortages of skilled labor. It might also be tougher to recover from recent slowdowns in the economy. As fewer new arrivals settle and more skilled people leave, gaps in the workforce could grow—especially in vital fields like healthcare, technology, and construction.

What Does It Mean for the Economy?

The effect goes beyond just fewer people living in New Zealand. When large numbers leave, housing demand can change. Fewer arrivals mean less pressure on home prices and rents, but it might also lead to lower business activity overall. Some experts say the shift could put more stress on the housing market because construction companies now face a shortage of workers, even as demand for new homes cools down.

A falling net immigration figure also affects public finances since taxes collected from new workers help fund government services. If the number of arrivals keeps falling and the number of departures rises, the government may have less money to spend on schools, hospitals, and other important programs.

How Is the Government Responding?

The rapid changes in migration patterns have pushed the government to look closely at its policies. Officials are weighing whether certain rules around work and residency visas might need changing, especially if they want to attract more of the skilled migrants that employers need.

However, any changes must balance the needs of employers with concerns about the impact of too many new arrivals on housing, schools, and healthcare. New Zealand’s immigration system is built to support the country’s economy while trying to keep up with changing needs at home and pressures from abroad. For now, though, many skilled workers and businesses are left wondering what the future holds.

A Global Story

New Zealand is not alone in dealing with big migration changes. Many countries around the world, including Australia and Canada, are stepping up efforts to attract workers as they face similar shortages. The main difference is that New Zealand’s current trends are more severe: fewer are coming, and more are leaving, especially among citizens. With Australia’s open job market and higher pay, it’s not hard to see why so many cross the Tasman Sea.

Summary Table: Migration Changes (Year Ending March 2024 vs. March 2025)

Source: Stats NZ

Key Quotes

A spokesperson for Stats NZ, Sarah Drake, explained, “The fall in net migration … was mainly due to fewer migrant arrivals although departures also rose to a provisional annual record.” This captures the heart of the problem: not only are more people leaving, but fewer are coming in to take their place.

What’s Next for New Zealand?

People across New Zealand are debating what all this means for the future. Many fear that, unless things change, the country could lose even more talented people and find it hard to grow. The drop in net immigration is much more than just a blip on the chart—it shows deeper problems that might stick around for years if not addressed.

Policy experts recommend that the government focus on two things: making it easier (and quicker) for skilled migrants to get residency, and looking for ways to ease the cost of living for everyone. Unless workers, both local and foreign-born, feel secure in their earnings and their future in New Zealand, the exodus is likely to continue.

For businesses, especially those in health, building, and technology, this time is especially tough. They depend on a steady flow of skilled people to keep up with demand, fill gaps, and bring in new ideas.

More Information for Readers

People interested in deeper statistics or who want to keep up with official updates on migration can find detailed reports at the official site for New Zealand international migration data. These releases are updated regularly and offer a close look at all the numbers discussed here.

Conclusion

To sum up, New Zealand is seeing a level of outward migration never before recorded. The reasons stretch from money problems and limited job options at home, to easier and more rewarding lives elsewhere, with Australia being the most popular destination. Net immigration has plummeted, and the country may soon face a shortfall in much-needed skills if this trend continues.

While New Zealand still has much to offer both its own people and newcomers, leaders must act soon to keep the country attractive for families and workers alike. Constant changes in the global job market mean that holding on to skilled people is more important now than ever. Only by listening to the needs of both migrants and local citizens, and by making it easier to build a future in New Zealand, can the country hope to reverse this record exodus. For further updates on these fast-changing trends, news platforms like VisaVerge.com continue to provide detailed coverage and in-depth reporting.

Learn Today

Net Immigration → The difference between the number of people entering and leaving a country during a specific period.
Brain Drain → The migration of highly skilled or educated individuals from one country to another, often for better job opportunities.
Long-term Departures → When individuals leave a country intending to live abroad for an extended period, usually a year or more.
Residency Application → A formal request made to obtain permission to live permanently in a country.
Stats NZ → New Zealand’s official government agency responsible for collecting and reporting statistical data, including migration.

This Article in a Nutshell

New Zealand faces a record-breaking exodus, with over 123,000 leaving in a year. Economic struggles and slow visa processes drive citizens and skilled immigrants away, mainly to Australia. This trend sharply reduces net immigration and raises concerns about the country’s future workforce, innovation, and economic growth prospects if unaddressed.
— By VisaVerge.com

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