NZ Brain drain is in full swing

New Zealand's net migration numbers remained negative according to the latest date by Stats NZ.

For the year ended July 2022 compared with the year ended July 2021, New Zealand saw provisionally migrant arrivals of 52,100, down 16 percent from a year earlier. The number of migrant departures was 64,500, down 7 percent in the 12 months ended July 2022.

The provisional net migration loss of 12,400 in the year ended July 2022 was made up of net losses of 8300 NZ citizens and 4100 non-NZ citizens, based on the passport used to cross the border.

Stats NZ Population indicators manager Tehseen Islam says, "Covid-19 related travel and border restrictions introduced in March 2020 in NZ resulted in disrupted travel and migration patterns. Migrant arrivals have dropped to levels seen in the early 1990s, and migrant departures have dropped to levels seen in the late 1990s.

Islam maintains that migration gains or losses are typically due to a combination of factors, which include relative economic and labour market conditions between NZ and the rest of the world and immigration policy in NZ and other countries.”

By comparison, the provisional net migration loss was 7600 in the year ended July 2021 and was driven by a net loss of 19,700 non-NZ citizens, partly offset by a net gain of 12,100 NZ citizens, Stats NZ said.

The most significant net migration gains were in citizens of India, the Philippines, South Africa, and South Africa.

Citizens of the United Kingdom, China and the United States were the main drivers of the overall net migration loss of non-NZ citizens in July 2022 year.

When asked to comment on the net negative migration data, a spokesperson from Immigration Minister Michael Wood's office said, “The migration figures represent a return to traditional migration levels prior to the pandemic. Alongside this, the numbers also highlight the expected pent-up demand from kiwis who have delayed their plans to move overseas due to Covid-19 uncertainties.”

Opposition political parties, too, have reacted sharply to the net migration data.

‘Our residency settings continue to be inequitable’

Green Party’s immigration spokesperson Ricardo March maintains that NZ’s residency settings remain inequitable. He says, “Our residency settings continue to be inequitable, and that could be playing a role in the Government struggling to attract migrant workers onshore to support our communities. I would prefer we focus on creating equitable pathways to residency, introduce an amnesty for overstayers, provide a pathway for people stuck offshore, end the discrimination towards disabled migrants and overhaul family category visas, so they're culturally competent."

‘Our slow border reopening could make the recovery process long and painful’

ACT Party’s immigration spokesperson Dr James McDowall. Maintains that brain drain is in full swing. He says, “While tourism and hospitality will benefit from the increase in visitors, the majority are from Australia for school holidays – there’s still a long way to go to attract those from further afield. We’re also still losing more people than we’re gaining, and many of those leaving are doing so long-term – brain drain in full swing. Tourists won't replace them. Our slow border reopening could make the recovery process long and painful.”

Considering NZ’s current economic situation, the lack of population growth is having an inflationary impact as there is an acute shortage of workers, which puts pressure on labour costs.

“NZ needs to work towards having a positive net migration”

 Giving his view on the situation, Kiwi Bank economist Jarrod Kerr said, "There is no denying that NZ needs to work towards having a positive net migration. As a country dependent on migrants, it is imperative to have the migrant inflow as migrants make for a young, energetic workforce. And that is very important for the survival of a small economy like NZ. The most significant effect of a negative migration is the shortage of labour. At present, every business in NZ is grappling with a staff shortage. The Government should take it seriously. As a country, we must attract the right people and focus on the right areas and skills."

With Covid-19 restrictions easing out and NZ borders fully opened, Kerr is hopeful that migration will pick up next year.