New Zealand immigration hits 17-month high amid economic caution

New Zealand's annual net immigration has shown a tentative recovery, climbing to a 17-month high in June as departures decreased. Statistics New Zealand reported that net immigration rose to 17,624 in the 12 months ending June, up from 17,263 in May. This marks an improvement from a three-year low of 9,504 in August 2025, though it remains substantially below the peak of over 133,700 recorded in late 2023.

The country's economic performance has significantly influenced migration patterns. A slowdown in gross domestic product, which grew by only 0.3 percent in 2025, and a brief recovery in early 2026 that was cut short by a global fuel shock, have made firms hesitant to hire and led to rising unemployment. Consequently, many New Zealand citizens have sought opportunities abroad, while foreign workers have become more reluctant to move to the country.

Prime Minister Christopher Luxon is under political pressure regarding the outflow of citizens, many of whom are leaving for higher wages and better prospects in neighboring Australia. He is banking on an economic recovery to reverse this trend, which is expected to be a key issue in the lead-up to the general election on November 7. There are early signs that the exodus may be slowing, with 63,901 citizens departing in the 12 months through June, a decrease from 65,680 a year prior. Simultaneously, New Zealand welcomed 130,680 immigrants in the 12 months to June, the highest number since April 2025, with approximately 80 percent of these being foreigners.