Why Is Brain Drain Phenomenon Making Headlines In New Zealand?

Friday, 22 April 2022, 3:23 pm
Press Release: Kalkine

Though the brain drain phenomenon is not new to New Zealanders, it has once again made headlines in the country as young Kiwis are jetting off overseas. The term brain drain is used to define those individuals who wish to leave the country, appalled by the many restrictions and regulations imposed by the government. These individuals are mostly those young professionals who are doing well in their careers and looking to relocate overseas to reclaim their freedom.

As per the Ministry of Business, Innovation and Employment (MBIE), as many as 50,000 Kiwis could leave the country over the next year as the international borders reopen. The MBIE forecasts came after the New Zealand government announced the reopening of international borders to Australia from April 12 and visa-waiver tourists from May 1.

Over recent days, the brain drain phenomenon has taken Kiwis by storm, arriving at a critical time when the shortage of workers is already hurting businesses. Facing a dearth of skilled workers, employers are dreading the consequences of such large-scale migration of domestic workers.

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Moving to find new opportunities

The growing exodus of youngsters in New Zealand can be attributed to the low wages and limited opportunities available in the country. New Zealand has been home to some of the most rigorous and toughest pandemic-related restrictions, which has left many individuals frustrated.

When many other nations have already lifted pandemic-induced restrictions, New Zealand has just begun relaxing its domestic restrictions under the traffic light system. With the prolonged implementation of COVID-19 restrictions, many youngsters have an unfulfilled pent-up demand for travel. Ultimately, mass migration had largely been predicted by the authorities though not at the cost of losing the domestic workforce.

The most common places where New Zealanders go for a vacation are Australia and the UK, both of which have seen easing restrictions in recent months. Thus, a major shift is visible in how individuals perceive travel in the post-pandemic era.

Meanwhile, the emerging trend of ‘workations’ amidst fast-developing remote working setup has resonated with the youth. One can say that finding a job in the current scenario is no longer just about looking for decent pay but also includes the freedom to enjoy and live a relaxed life.

The immigration conundrum

While many Kiwis are projected to head out of the country, several foreign immigrants are also likely to fly into New Zealand in search of jobs and better education. The immigrant population has long been contributing to the population growth rate of New Zealand. This has developed an unexpected dependence of the country on the foreign population for skilled and unskilled job roles.

With the domestic population slowly heading out of the country, the need for foreign immigrants appears to be more pronounced now than ever. One of the most crucial sectors that benefit from immigrant workers is the property sector, which increasingly contributes to New Zealand’s economic growth. Even in the highly skilled segment, workers add to the country's growth without any heavy investment.

Over the past decade, an increase in temporary work visas has been visible rather than the permanent migration of foreign workers. Therefore, the reopening of borders is expected to have a mixed impact on the economy. One that is favourable due to the influx of foreign immigrants and one that can hurt domestic growth as Kiwis migrate overseas.

Overall, the shift in the labour market dynamics brought on by the pandemic is a double-edged sword. The world has become increasingly accessible, with opportunities available almost everywhere. In such a scenario, the only factors holding back people to their home ground are their family and friends. Thus, it appears imperative for the New Zealand government to pay special attention to the brain drain phenomenon and introduce better pay and working conditions for the labour force.

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