Kiwi Exodus Slows as Australia's Economy Loses its Lure

The steady flow of New Zealanders moving to Australia for better pay and lifestyle has slowed down as Australia's economy shows signs of strain. Provisional Stats NZ figures show a net 28,500 people moved from New Zealand to Australia last year, down from more than 31,000 the year before.

New Zealand's unemployment rate remains higher in absolute terms at 5.6%, but HSBC chief economist Paul Bloxham says the trend lines are moving in New Zealand's favour. He points to job advertisement data as a leading indicator, saying that job advertisements have been rising in New Zealand and trending lower in Australia.

The shift comes as the Reserve Bank of Australia has lifted its official cash rate three times this year to curb inflation, which is now flowing through to employment. Australian Bureau of Statistics figures show unemployment climbing to 4.5%, its highest level since the post-COVID period, while wage growth has slowed to 3.2%, down from 3.4% a year earlier.