Myth: The Brain Drain - Population and Sustainable Development
Population and Sustainable Development 2004.
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Population and Sustainable Development 2004.
Sustainable Development New Zealand Program of Action. Myth: The Brain Drain 

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Myth: The Brain Drain

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The Brain Drain


There is always intense interest in migration to and from New Zealand, and there are a number of topics related to this that are worthy of investigation. One of these is the 'brain drain', the idea that New Zealand is losing its best and brightest (a.k.a. the 'brains') overseas - especially to Australia, our most popular permanent and long-term (PLT) destination.


Over the past 15 years, net PLT migration (arrivals minus departures) has averaged an inflow of 12,800 people a year. But are these new arrivals less skilled, less educated and less qualified than the corresponding departures, so even though there is a gain of people, there is still a loss of 'brainpower'?


Once again, looking at the annual average over the past 15 years, New Zealand had net PLT outflows amongst occupations such as service and sales workers (an outflow of 670), labourers (300), machine operators and assemblers (250) and agricultural and fishery workers (200). However, there was a large inflow of professionals (1,570). This illustrates a loss of people in less skilled occupations and a gain in more skilled occupations. The difference in occupations between arrivals and departures can be explained in part by the restrictions on PLT travel into New Zealand, specifically the skilled migrant quota which applies to citizens of all countries except New Zealand and Australia. On the other hand, people departing New Zealand for our main PLT destination country of Australia do not face the same system of visas and permits, and thus those in less skilled occupations are not restricted.


But, New Zealand's main PLT inflow actually comes from the 'not applicable' occupational categories, with an annual net gain averaging 9,830 over 15 years. This group includes children, spouses and retirees, who are not in the workforce. Many will be coming with, or to join, skilled migrants. The group also includes overseas students coming to New Zealand for a year or more. When these students gain their qualifications, many stay in New Zealand on work or residence permits, so they become 'brain gains' after their arrival.

The figures do not support the idea of a 'brain drain', as even though we do lose some, New Zealand has a net gain of skilled people. The concept of a 'brain exchange' seems to be a better fit to the figures. How these 'brains' are used once in New Zealand (e.g. doctors driving taxis) could, however, be debated.


 

Conclusion: This myth is busted

 

How did this myth arise?

The myth arose from a number of factors. One of these is that young New Zealanders traditionally depart New Zealand after university on their "Overseas Experience" (or "OE"). A high proportion of these people actually return a few years later.


In addition, although we have been steadily gaining PLT migrants in recent years, this has not always been the case. There were net outflows of people in the 1980s, in all occupational categories, as well as more recently from 1998 to 2000. For example, in the year 2000, New Zealand had a net outflow of 1,890 technicians, 1,590 managers and 1,470 professionals. So, the idea of a 'brain drain' has been realised in the past.


The final factor that may have influenced the myth is if people equate the 'not applicable' occupational group with unskilled migrants, rather than the family members of skilled migrants that they tend to be.




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