One-third of university graduates head overseas

One in three of this year's university graduates say they will immediately leave New Zealand to work overseas.

The "brain drain" figures are revealed in a new graduate careers survey - the largest of its kind in Australasia.

It shows 31 per cent of this year's graduates will immediately snub New Zealand in favour of employment in Europe, Britain, the United States, Asia or Australia. Within a few years 66 per cent plan to leave.

Once international students are discounted, the survey still shows about 20 per cent of New Zealand-born graduates will go abroad as soon as they graduate.

The study also found that 67 per cent of students planned to live and work in a different country by the time they were 30.

Survey manager Tim Wise said the figures pointed to a "huge brain drain".

This was also reflected in the characteristics that final-year students expected from local employers - they wanted well-known, international organisations enjoying commercial success.

"If they [New Zealand students] are not leaving immediately, they are looking for an employer who can offer that potential," said Mr Wise.

"There's a real push to get away and the big question is, will they come back?"

Next year's survey would ask that question, he said.

The Herald-sponsored Australian & New Zealand Graduate Careers Survey 2004 saw market researcher High Fliers conduct 7404 interviews with final-year students.

Sixteen universities took part, including Auckland, Victoria, Canterbury and Otago.

On top of those students planning to work abroad, a further 13 per cent planned to travel overseas after graduating. Only 52 per cent expected to start a job, or start hunting for one immediately, with others planning postgraduate study, other work or having "no definite plans".

The apparent lack of enthusiasm for a New Zealand job was perhaps sparked by fears about employment prospects. Almost 90 per cent felt either "very limited" or "some but not enough" jobs were available.

But Mr Wise said students' mindset about job prospects tended to lag the true situation by about 12 months.

"Everyone we are hearing from says employment is on the increase and many are struggling to find enough of the right people," he said. "However, students are understandably cynical about the market."

Statistics New Zealand figures released last month show the unemployment rate is at 3.8 per cent - the lowest level since 1986.

Business Roundtable executive director Roger Kerr backed Mr Wise's optimism, saying students definitely had the wrong perception.

Mr Kerr said the brain drain issue plagued New Zealand. While it was good for young New Zealanders to go abroad and expand their experience, the key was encouraging them to return.

The survey revealed that students from Otago had the highest salary expectations, looking for an average starting package of almost $35,000. That probably reflected the expectations of medical and dentistry students.

Wellington students had the lowest hopes, expecting $31,100. The average expectation across New Zealand was $32,900.

Owning a home was ranked equally important as working and living abroad, but only half expected to be married by the age of 30, and fewer than a third thought they would have children by then. Post-graduate study promotions were deemed "more important".