"I think there is also a perception from Australians and definitely European and South Americans that New Zealand is the prize place to work, live and play, and the North Island scores highly in that."
People were moving back to raise their families, he said.
"A number of people tend to move [to Australia] in, say, their early 20s to 30s, work for 10 to 20 years there, then through that time decide they want somewhere better to raise a family or be back with their close and extended families.
"Grow Rotorua did attend two recent job fairs run by Immigration NZ in Sydney and Perth and the job leads from that have been more in the higher skilled, better paid sectors.
"Other factors include comparative housing and general living costs, lifestyle, climate, culture, tolerance. In other words, it is no longer just about the comparative pay rates."
Rotorua Chamber of Commerce chairman Darrin Walsh said economic factors and Grow Rotorua's presence at the job fairs were behind the change.
"Recently, the Australian economy is not going as well as ours is - ours is tracking up and theirs is not performing as well, and the cost of living in Australia is higher than it was. The council has been over there actively attracting people to come here, and Rotorua has a good lifestyle. The economy is bouncing up, business confidence is increasing and therefore there is an increase in jobs. Long may it continue."
