BRAIN GAIN

Returning Kiwis bring back skills but there are also job challenges

As the Covid-19 crisis rages overseas, tens of thousands of Kiwis are returning home — creating potential economic benefits as they bring their skills and experience but also challenges in finding employment.

It’s a reversal of New Zealand’s “brain drain” where thousands of educated and highly skilled Kiwis sought jobs in other countries.

As of June 20, more than 21,000 Kiwis had returned to our shores and been sent to quarantine facilities. A further 3200 were expected by July 1. ASB chief economist Nick Tuffley said the number of people arriving as we prepare for a “major recession” could create difficulties.

On Friday, the Treasury said it expected the unemployment rate would increase from 4.2 per cent in the March quarter to 7.5 per cent in the June quarter.

The challenge, according to Tuffley, was whether those returning to New Zealand would be able to find jobs right away.

The upside was that New Zealand’s usual outflow of Kiwis heading overseas for work had been plugged.

“The border closure isn’t just about who is coming back but it’s also about who is no longer leaving as well,” Tuffley said.

“We’ve got that potential where we might have been leaking skills to other countries . . . their lack of ability to travel may be crimping down on the opportunities they ordinarily have.”

Infometrics senior economist Brad Olsen noted many returnees were able to continue working for the companies they were employed at offshore, reducing the need to find new jobs in New Zealand.

There are 21 active cases of Covid19 currently in New Zealand but more than 5 million worldwide.

As the pandemic continued to ravage countries overseas, Olsen thought it was safe to assume Kiwi returnees would stick around for a while. “This pandemic isn’t going away so it’s not like they’re coming

in for some quick refuge for six months and heading off,” he said.

“They will be contributing back to the country and in some ways it’s certainly a bit of brain gain coming on.”

Anecdotally, Olsen had heard of new arrivals avoiding the major cities and heading to the regions. The experience of working from home over lockdown in New Zealand meant the regional option was opening doors for workers, Olsen said.

“I think more and more we’re going to see a concentration around the regions for the next five to 10 years,” he said.

“Not only for returning Kiwis but because we can now remote work, we can operate without having to be quite so near an office.

“So that might be a trend that returning Kiwis look for, particularly noting that the regions have lower costs of living.”

Between 600,000 and one million Kiwis live abroad, Stats NZ senior demographer Kim Dunstan told the Herald.

Executive recruitment agency Sheffield had noticed an increase in inquiries from people considering working here.

The “flood” of interest wasn’t only attributable to New Zealand’s Covid

19 response but the idea of it being a safe haven, executive director Ian Taylor said. “Given parts of the world being in some disarray either politically, economically or socially for the last few years, there has been a rising

tide of interest. There’s certainly been a significant increase in inquiries about working in New Zealand, not only from Kiwis returning but from other nationalities as well.”

New Zealand’s response to Covid

19 and the lockdown could bring investment rewards, Tuffley said.

“We could well benefit if people start to look to New Zealand as an investment destination.

“They might say, let’s go and put

some capital into New Zealand,” he said. “There are some reputational benefits for New Zealand if we can maintain our Covid-free status from an investment point of view and a product purchase view.”