Departures continue to beat arrivals as New Zealand faces net migration challenge. Photo / Alex Burton

Brain drain stabilising? Annual net migration loss improves in August

Author: Liam Dann, NZ Herald,
Publish Date: Wed, 12 Oct 2022, 12:05PM

New Zealand continues to struggle to attract workers but the brain drain showed signs of stabilising in August - with a small net migration gain of 47.

There were 7851 migrant arrivals in August and 7804 departures, new figures from StatsNZ show.

On an annual basis, New Zealand recorded a net loss of 11,000 people. That figure was comprised of 10,300 New Zealand citizens and 600 non-New Zealand citizens.

Overall the annual figure represented a small improvement over the year to July - which saw a net loss of 12,250.

But departures to Australia remain strong.

There was a provisional net migration loss of 7700 people to Australia in the year ended March 2022.

This was made up of 15,100 migrant arrivals from Australia, and 22,800 migrant departures from New Zealand.

Traditionally, there has been a net migration loss from New Zealand to Australia, StatsNZ said.

This averaged nearly 30,000 a year during 2004-2013, and about 3000 a year during 2014-2019.

Like many countries around the world, New Zealand is in the grip of a labour market squeeze which is slowing business growth and pushing up wages.

Opposition parties have called on the Government to relax immigration rules to attract more workers.

This morning Act immigration spokesman James McDowall said the data showed the "brain drain was well and truly on".

"People are struggling to get into the country because of Immigration New Zealand's archaic regulations and slow processing times making it near impossible.

More workers: RSE workers from Vanuatu pick a kiwifruit crop. Photo / Jamie Troughton, Dscribe Media Services

"Immigration New Zealand needs to start thinking like a recruitment agency rather than a security guard. We need to immediately reopen the Skilled Migrant Category.

"Orchards can't get fruit pickers. Building sites can't get builders. Hospitals can't get nurses. Farms can't get milkers."

The shortages of essential workers were creating a wage-price spiral and adding to inflation, he said.

In the past few weeks, the Government has tweaked migration rules to allow 3000 more seasonal workers and loosen qualification requirements for some skilled positions, like chefs.