Brain drain pushes graduates overseas
It is no secret that New Zealand is currently facing severe worker shortages. Prices are rising. Wages are falling. Young New Zealanders are increasingly feeling the pressure to leave our country in search of a better deal elsewhere. To put it in short, our country is experiencing a ‘brain drain’.
Recent statistics have shown that more people are leaving the country than arriving, with monthly net-migration figures remaining in the negatives since March last year – the lowest that Aotearoa has seen since the 1990s. The pandemic can take a lot of the blame for this, and with the borders reopening it is expected that many Kiwis will take flight.
So, what does a brain drain mean for New Zealand? Immediate effects include staff shortages, reduced human capital, loss of talent and a higher cost of public goods. Long term effects include a slower or limited capacity to innovate, demographic shifts and reduced economic growth.
“I’ve noticed the staff shortages in particular. I work in a popular Auckland bar and we are so understaffed that sometimes my manager and I end up having to work 14-15 hour shifts just to stay open. It’s ridiculous, and I know we are not alone. I know many other businesses that are having the same trouble. It sucks because it makes taking sick days virtually impossible,” says Auckland bar manager, Jorge Simpson.
“My boyfriend and I are currently in the process of getting our Australian visas. I will definitely miss New Zealand as a country, but I won’t miss how much everything costs, and how much I have to work,” says graduate student Lily Donahue.
“These last few years have been so hard financially. Both of us work full-time and we still struggle to pay all our bills and also put aside any savings for a future house/travel. It just makes me think, ‘What’s the point?’ For us, Australia offers everything from better pay to cheaper and better housing, and we will be working less hours than we are here so we get more quality time together.”
Economist Ruben Watson says, “At this stage, my biggest concern about our current economic situation is the lack of young talent coming into the country, combined with the significant and ongoing loss of talent.”
“I’m not surprised we are seeing a large outflow of young New Zealanders wanting to travel the world, especially after the lockdowns we have just experienced. To me, this is a positive indicator and I am compelled to believe that net-migration figures will shoot back up in the coming years as we reopen our labour market.
“In the meantime, we have to face the challenges that come with having more work than we have staff to do it, and recognise that the pressures on the economy are likely to remain until this is resolved.”
