As New Zealand's cost of living crisis deepens, more economic refugees leave.

As soon as it gets cold, our body releases heat through respiration which in turn warms our limbs up for ushering a refreshing winter air flow into the room. So here we go again, this time with another of those pesky “puma’s”, who decided to join me! I just hope all this extravagance doesn’t cause too many complications in future! New Zealand was long revered as an idyllic and progressive sanctuary; however, its economic downturn has caused many citizens to leave. Amid rising prices, interest rates, and unemployment levels; according to estimates made by government recently; over 131,200 individuals left New Zealand during this past 12 month period from June. That number represents an all-time record high! Over 84,000 of those were citizens compared with nearly 71,000 before the pandemic struck in June 2019. Wilson Ong, 32, who works in New Zealand’s fashion retail industry as both manager and buyer has witnessed many of his friends leaving New Zealand; now plans on following in their footsteps and is considering leaving as well. “Quality jobs are my primary consideration,” said Hector. In New Zealand, opportunities and work experiences available feel limited. At first glance, Ong may appear like just another Kiwi traveling abroad for experiences abroad – especially considering recent Covid-19 travel restrictions have jeopardised many plans – however she also represents growing dissatisfaction among younger kiwis about an increasingly poor economy according to one economist. More than half of New Zealanders who emigrated during the year ending June 2024 were aged between 20-39 according to government statistics, with those between 25 and 29 comprising the largest group. “Over the past 18 months, New Zealand’s economy has been shrinking steadily and job losses are already starting to hit young workers hard, according to Shamubeel Eaqub of New Zealand Institute of Economic Research.” “Until New Zealand’s job market improves, I don’t expect economic refugees to stop leaving from here,” said Mr. Gaffney.Cost-of-living CrisisEarly on during this pandemic, New Zealand government instituted strict lockdowns and implemented mandatory 14-day managed isolation facilities for anyone arriving into their country in an effort to eradicate Covid virus (CIV). Before managed isolation was enforced, then-Prime Minister Jacinda Ardern reported that nearly 40,000 Kiwis returned home between Match 20, 2020 and April 9, 2020 — more than any of the hotel rooms available across New Zealand at that time. New Zealand later earned praise for its swift pandemic response that eliminated virus for extended periods and led to lower mortality rates; Ong had delayed moving overseas because he saw New Zealand as being safer during an impending pandemic outbreak. He took advantage of Covid-era wage subsidies and eventually was able to return to his previous job in Auckland – yet since those subsidies have since dried up and many small businesses that closed during pandemic lockdowns never reopened, neither did this man’s. Maintaining high inflation has reduced purchasing power of New Zealand’s roughly 5 million consumers; New Zealand experienced its highest annual inflation rate ever during 2022 with 7.3% year-on-year inflation at the June quarter 2022 – its highest mark since over three decades ago! Although inflation had moderated somewhat by June quarter 2024 (it had reached 3.3% as of that quarter), it still exceeded The Reserve Bank of New Zealand’s medium term target range of between 1% and 3%. Rents and mortgage payments as compared with salary also continued to linger above long-term averages according to data from CoreLogic; wages have stagnated as New Zealand has bounced between recession and recovery since Pandemic Panic struck, leaving Ong feeling economically worse off than pre-pandemic. Not only is Australia’s economy superior, but their government makes moving there simple by offering special visas for Kiwis who wish to relocate there. Since 2023, New Zealand citizens who have lived in Australia for at least four years can apply directly for citizenship. Furthermore, Australia’s government is actively recruiting kiwi workers in public service roles. “The economy will likely worsen before improving,” noted he, attributing blame partially to New Zealand post-Covid policy moves such as higher interest rates which have restricted consumer and business spending.