New Zealand has slipped significantly in the word rankings in terms of its competitiveness on a global scale, and its slide is widely being blamed on the brain drain the nation is still suffering from annually.
Despite news that up to a fifth of expats in the UK are considering leaving Britain and returning home because the economy and prospects in general in the UK are so bad, New Zealand is not seen as having a strong enough retention of talented workers, and as a result it is becoming less competitive.
New Zealand’s annual brain drain can be seen as an opportunity for Britons who want to emigrate to New Zealand however, and if you’re a talented worker looking for a nation that will respect your skills and reward your commitment to it, why not consider living and working in New Zealand?
Interestingly, of all the nations included in this year’s Expat Explorer Survey by HSBC, New Zealand didn’t get a look in. The Expat Economics section of the survey didn’t feature any economic data from expats living in New Zealand, suggesting that this nation really is much less competitive than it once was.
The World Economic Forum’s annual Global Competitiveness Report now has NZ lying in 23rd place because of the skills shortages it suffers, and also because there is inadequate infrastructure, poor access to financing and unattractive tax rates hampering businesses. This is a slide in the rankings for New Zealand, and one it is very keen to reverse as soon as possible.
Earlier this year the government made a real effort to retain talent – they announced personal taxation cuts to try and incentivise local graduates to stay. However, the brain drain is still 10 times worse than it is in Australia and for every skilled worker who leaves, New Zealand can kiss goodbye to future tax revenues.
What this means for those Britons starting a brand new brain drain in the UK, and following expatriate workers out of Britain, is that there’s a new nation on the radar that would welcome their talent and reward them with more attractive taxation rates as a result for example.
Whilst NZ is certainly not a low tax country compared to those in the UAE for example, it does offer incoming migrants the chance to enjoy certain sources of foreign derived income tax-free to smooth their transition. What’s more, from October all income tax rates in NZ are coming down. In the UK the highest rate of personal income tax is now 50%, in New Zealand it will fall to just 33% - with the lowest rate starting at just 10.5%
The brain drain in New Zealand also means that there are still plenty of careers and professions listed on the ‘skills wanted’ list – meaning that if you’re a professional Briton with skills, talent and experience, you can potentially get a visa to go and live and work and enjoy a fantastic new life in New Zealand.
And on a final note, despite scoring badly for business competitiveness according to the World Economic Forum’s annual Global Competitiveness Report, New Zealand scored well for its lack of corruption, the ease of setting up a business, and for its quality primary and secondary school education. More reasons to consider NZ for a permanent move for you and your family perhaps?
