An increasing number of young people are leaving New Zealand as the borders reopen and domestic economic conditions tighten.

In the year to March, annual net migration was in negative figures, with an additional 7,300 people leaving than entering the country, according to the latest findings from Stats NZ. In contrast, due to the border closures during the pandemic, in March 2020 there was record net gain of 91,700.

The data showed more and more New Zealanders – especially graduates and young professionals - are heading overseas due to soaring living costs, high inflation and expensive housing , The Guardian reports.

According to Brad Olsen, Infometrics principal economist and director, these figures “demonstrate just how momentous really the shift has been in New Zealand’s migration outcomes”, moving from a net loss from 50,000-60,000 annual net gains in the years leading up to the pandemic. “It’s a huge reversal – and the first time we’ve seen those negative figures since the global financial crisis, the Christchurch earthquakes and the Australian mining boom all combined in the early 2010s.”

The losses were being fuelled by young adults, said Stats NZ, particularly between the ages of 18 and 27. However, ongoing labour shortages could be exacerbated as more workers leave the country.

“The difficulty finding workers is extreme around the country – you have a smaller working age population than the year before, at a time when everyone is desperately calling out for workers. [It] really just exacerbates the pressures that businesses are under,” Olsen added.

Last month, the government estimated 50,000 people would leave over the coming year, but this may increase to 125,000. In regard to the losses, prime minister, Jacinda Ardern commented: “It has been part of our history as a nation to frequently have New Zealanders come and go as part of our overseas experience, building skills and talent.”