Record Exodus: Kiwis Flock to Australia for Higher Wages Amidst Economic Woes

Key facts

• Nearly 73,000 New Zealand citizens departed in the 12 months to September 2025, a record high.
• Almost 40% of those leaving are aged 18 to 30, fueling 'brain drain' concerns.
• Average weekly earnings in Australia are approximately 44% higher than in New Zealand.
• Over half of New Zealand citizens who left in 2024 moved to Australia.
• New Zealand experienced a net migration loss of 30,000 people to Australia in 2024, the highest in over a decade.
• Australia's youth unemployment rate (9.5% in Dec 2025) is lower than New Zealand's (13.2% in Q4 2025).
• New Zealand's GDP per capita is approximately $48,000, compared to Australia's $64,400.

A Tide of Departures Across the Tasman

A record number of New Zealand citizens are leaving their homeland, with Australia emerging as the primary destination for those seeking improved economic prospects. In the 12 months to September 2025, nearly 73,000 New Zealanders departed, marking an 8 per cent increase from the previous year. This exodus, particularly among younger demographics, is intensifying a national conversation about wages, opportunity, and the long-term implications for New Zealand's future workforce and economy. The allure of higher pay and broader career horizons is drawing a significant portion of the nation's youth across the Tasman Sea. Nearly 40 per cent of those leaving are between 18 and 30 years old, a demographic crucial for innovation and future growth. This trend has ignited fears of a "brain drain" that could hollow out key sectors and diminish the country's competitive edge on the global stage. The ease of movement between the two nations, with no visa requirements and a short flight, has historically made Australia an accessible option. However, the current scale of departures has struck a particular nerve, exacerbated by the relocation of high-profile figures and feeding into pre-election debates.

The Wage Gap: A Powerful Magnet

The economic disparity between New Zealand and Australia is a central driver of this migration. For many, the financial gains are immediate and substantial. Max, a university-qualified environmental monitoring technician, found he earned more as a dishwasher in Australia than he did in his skilled role back home. "If that doesn't say something, I don't know what does," he remarked, highlighting the stark reality for many. Official data underscores this difference. Average weekly ordinary-time earnings in Australia stand at A$2,051, approximately 44 per cent higher than New Zealand's NZ$1,681. This significant gap translates into a tangible improvement in quality of life for many migrants. Hayden Fisher, a 24-year-old who moved to Sydney, reported spending about a quarter of his wages on groceries in Australia compared to half in New Zealand, finding a "path to economic stability" that felt unattainable at home. Beyond headline wages, Australia's larger economy and job market offer greater opportunities for career progression. With a lower youth unemployment rate and a broader range of available positions, the country presents a more dynamic employment landscape for those seeking advancement.

Economic Pressures Fueling the Exodus

Domestically, New Zealand is grappling with rising living costs and stagnant wages, a combination that makes emigration an increasingly logical choice for many. Max noted that "as house prices increase and living costs increase, wages aren't increasing to match them," making the current government feel "unappealing for a younger generation." This sentiment is echoed by others who describe their financial situation in New Zealand as "paycheck to paycheck," even without dependents or extravagant lifestyles. Professor Alan Gamlen, director of the Migration Hub at the Australian National University, links the current high influx to New Zealand's economic downturn, which, like other nations, is still feeling the long-term effects of the COVID-19 pandemic. The country's smaller scale and remote geography mean it can feel global economic shocks more intensely, amplifying domestic pressures. The financial realities are stark when viewed through GDP per capita figures. Australia's GDP per capita is approximately $64,400, significantly higher than New Zealand's $48,000, indicating a broader economic prosperity that attracts those seeking a better financial footing.

A "Painfully Easy" Decision for a Generation

For many young New Zealanders, the decision to move to Australia is driven by economic necessity, making it "painfully easy." Sean Collier, a 27-year-old lawyer and comedian who relocated to Melbourne two years ago, observed that a significant portion of his university friend group has also moved across the Tasman. "It makes me wonder who's left at home sometimes," he commented, reflecting the widespread nature of this trend. Collier described his move as being driven "entirely by economic necessity." He found that his job in Australia paid almost double what he earned in New Zealand, while accommodation costs remained similar and supermarket shopping was considerably cheaper. This combination led to a decrease in the overall cost of living and a substantial increase in wages, a proposition too attractive to ignore. He expressed a desire to raise his children in New Zealand one day, but stated that "at present frankly it's economically inconceivable for most people." This sentiment highlights the long-term implications of the current economic climate, suggesting that a return to New Zealand may only be feasible if conditions for renters and students, for example, become more "liveable."

Australia's Targeted Recruitment and New Zealand's Strain

Australia has actively pursued New Zealand workers, implementing recruitment campaigns in critical sectors such as healthcare, early childhood education, and policing. These initiatives often include attractive incentives like higher wages and relocation packages, further bolstering the draw for Kiwis. While these arrivals help alleviate skills shortages in Australia, the outflow has placed a strain on New Zealand's essential services. Hospitals and other vital sectors are reportedly understaffed due to the emigration of skilled professionals, creating a reciprocal challenge for both nations. Despite the significant number of departures, it is important to note that New Zealand still attracts more people than it loses overall. The country recorded a net migration gain of 14,200 in 2025, though this was the smallest annual gain since 2013, excluding the pandemic-affected year of 2021. The data also shows that while 67,800 citizens left in the year to June, only 26,000 returned, indicating a substantial net outflow.

Debate Intensifies Ahead of National Elections

The sustained exodus of New Zealanders, particularly skilled workers and young people, has become a focal point of debate ahead of the nation's general election in November. The emigration trend is forcing political parties to address concerns over wages, job opportunities, and the long-term economic health of the country. Economists like the one cited in Excerpt 1 suggest that more innovation is needed to incentivize young people to stay or return. The argument is that simply relying on global workforce flows is insufficient to counter the current domestic challenges. As the election approaches, the question of how to stem the tide of emigration and foster a more appealing economic environment for its citizens will be a critical challenge for New Zealand's future leadership.

The bottom line

• A record number of New Zealanders, primarily young adults, are migrating to Australia due to significant wage differentials and higher living costs at home.
• Average weekly earnings in Australia are approximately 44% higher than in New Zealand, making the move financially attractive.
• New Zealand's weak economy, characterized by rising living costs and stagnant wages, is a key factor driving emigration.
• Australia actively recruits New Zealand workers in sectors facing shortages, further incentivizing the move.
• The "brain drain" is creating staffing challenges in New Zealand's essential services, including healthcare.
• The ongoing exodus is a major issue in New Zealand's upcoming general election, prompting debate on economic policy and future prospects.