New Zealand immigration growth slows to record numbers of citizens leaving the country

Immigration to New Zealand has slowed to its lowest level in 16 months, while a record number of New Zealanders are heading overseas in search of jobs and better pay.

Figures released by Statistics New Zealand in Wellington on Tuesday showed net migration fell to 73,270 in the 12 months to June, down from revised net migration of 83,740 in the 12 months to May. This is the lowest level since February 2023 and follows a high of 136,600 in October last year.

While arrivals remain at historically high levels, the downward trend adds to signs that demand for housing and other services may not be as strong as assumed earlier this year. At the time, the RBNZ noted that arrivals could be one source of additional inflation. The focus has shifted to rising numbers of departures, reflecting a sluggish domestic economy and bleak prospects for stagnant hiring.

The report shows a record 55,270 net New Zealanders left the country in the 12 months to June. Of those, 80,170 left the country and 24,900 arrived.

Statistics New Zealand said about 38 percent of those leaving the country were between 18 and 30 years old, adding that about half went to Australia.

Signs that migration is peaking would make the RBNZ more comfortable that inflation is under control. New Zealand is set to announce its next interest rate decision on Wednesday, with economists and investors unsure whether the government will start cutting rates or wait for further evidence that inflation is back on target.