New Zealand is witnessing its highest rate of citizen emigration in over a decade, with a growing number of young people leaving the country in search of better opportunities abroad.

According to data released Friday by Statistics New Zealand, 71,800 citizens departed the country in the year to June 2025. That figure marks a significant rise from 67,500 in the previous year and comes close to the record 72,400 exits seen in early 2012. Notably, 38% of those who left were aged between 18 and 30.

The emigration spike coincides with a deepening economic downturn — considered one of the most severe since 1991 — driven by weak productivity and recent policy missteps. Unemployment climbed to 5.2% in the second quarter of 2025, its highest level in nearly five years, while workforce participation fell to a four-year low.

Foreign migration into New Zealand has also slowed dramatically, with arrivals of non-citizens down by nearly half compared to 2024.

In response to the economic malaise, the Reserve Bank of New Zealand has aggressively slashed interest rates, cutting the official cash rate by 225 basis points since August 2024. While GDP grew by 0.8% in the first quarter of 2025, job creation has lagged and inflation continues to pressure household budgets.

Australia, the United Kingdom, and other countries are increasingly popular destinations for departing New Zealanders. Australia in particular is capitalising on the outflow by offering relocation packages and leveraging its visa-free work arrangements with New Zealand citizens to address domestic labour shortages.

While the share of emigrants under 30 remains below historical highs — such as in 1979 when 60% of departures were in that age group — analysts warn that the current trend could accelerate if New Zealand’s economy fails to rebound.