Local brain drain coming as Govt focuses on foreigners - Editorial

There's something uncomfortable about dusting off the welcome mat while locals are struggling to find work. Photo / Mark Mitchell

As the Government ramps up its efforts to attract rich foreign investors and digital nomads, Wellington recruiters are telling jobseekers to consider relocating for more career opportunities.

The capital was hit hardest by last year’s public sector cuts, driven by the Government’s directive to slash spending.

The after effects are still being felt with recruiters warning of another tough year for Wellington’s job market and advising jobseekers to consider a move overseas.

The Robert Walters 2025 salary survey showed New Zealand was losing more talent to Australia, with 42% of people planning to relocate opting to go across the ditch. For Australians, only 2% would consider moving here.

Robert Walters senior director Bridget Clarke said the scary thing for Wellington is the prospect of losing mid to senior managers.

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“They’re going to go to Australia, they’re going to take their families and they’re not going to come back.”

Nationally, unemployment has already risen, increasing from 4.8% in the September quarter to 5.1% in the last quarter of 2024.

Enter the Government and its big growth mentality.

Prime Minister Christopher Luxon kicked off 2025 with a State of the Nation speech dedicated to economic growth, saying we need to start saying “yes” and ditch our “culture of no”.

“We need more jobs, more investment, more innovation, exports, and talent. The bottom line is we need a lot less no and a lot more yes.”

As it turns out, we need to start saying “yes” to more foreign influence and import more talent from overseas.

Since Luxon’s speech, the Government’s launched a new “digital nomad” scheme, is relaxing immigration settings to make it easier for rich migrants to invest in New Zealand businesses and is setting up an agency solely focused on luring overseas investors.

Digital nomads will be able to visit New Zealand on short stays while still being allowed to work remotely for their employers back home.

It’s the offshore companies that pay their wages, but who also benefit from their talent and skills.

Newly minted Economic Growth Minister Nicola Willis, who became the face of cuts to the public sector, has said we need to “shift our minds” to embrace this new approach to driving economic growth.

Luxon has described the initiatives as “dusting off the welcome mat” and declaring New Zealand open for business.

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There’s no doubt New Zealand is cash-strapped and needs financial investment from offshore interests to grow.

Visitor numbers are still down on pre-Covid levels and attracting people back to New Zealand can only be good for the country.

But there’s something uncomfortable about dusting off the welcome mat while locals are being forced to move overseas in search of work.

Recruiters say we’ll lose mid to senior managers - people who have children attending schools, own homes, contribute to communities, enhance our culture and work for New Zealand businesses.

In their quest for economic growth, it would be wise for National politicians not to forget about the domestic voters they need to hold on to power.

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