Fleeing Abroad for Economic Reasons

The syndrome of wanting to escape abroad does not only affect Indonesians and residents of developing countries. Several developed countries are also experiencing it. The reasons are generally the same, namely economic improvement for a better life. Along with this, the countries being left behind quickly become aware. They then work to improve their domestic systems because, if ignored, this phenomenon could have negative impacts.

In the Asia-Pacific region, New Zealand has recorded a new high in the number of residents leaving the country. They have chosen to depart due to a severe economic recession, limited job opportunities, and high living costs.

According to Bloomberg, Monday (2/17/2025), Statistics New Zealand reported that the number of emigrations was 128,705 in 2024, up from 101,585 departures in 2023. The report showed that 72,002 New Zealanders left the country as well as 56,703 foreigners living in the country.

"For most of the world, New Zealand is an attractive place to live, but for New Zealanders, there are also other places that seem more appealing, such as Australia, the US, or the UK," said Michael Gordon, a senior economist at Westpac.

After accounting for the number of residents who returned home, the net emigration of New Zealand residents reached a record 47,000 departures in 2024, up from 43,300 departures in 2023. Approximately 56 percent of them moved to Australia.

New Zealand’s Minister for Social Development and Employment Louise Upston told The Post that the only way to stop the outflow of labour is to improve opportunities for young people. “To make our country a better place to work, to start a business, to earn a living wage, to buy a home, to raise children and to educate them,” she said.

Southern and central European countries are facing similar issues. Their residents are seeking opportunities in northern countries. Portugal, for instance, has found that 23 percent, or approximately 2.3 million of its citizens, now live abroad, according to data from the Emigration Observatory.

That number includes 850,000 Portuguese citizens aged 15-39 years, or approximately 30 percent of Portugal's youth population and 12.6 percent of the working-age population.

“This is not a country for young people. Portugal is going through a real demographic hell because it is not able to create the conditions to retain and attract young talent,” said Pedro Ginjeira do Nascimento, Executive Director of the Business Roundtable Portugal, which represents 43 companies in the country.

In October 2024, in order to stem emigration, the Portuguese parliament proposed a tax cut for young workers under 35 by 2025. The country offers young people a gradual, progressive tax break over a decade. They pay nothing in the first year of work, followed by tax adjustments in subsequent years.

The departure of many workers, especially superior resources, is known as the brain drain phenomenon. This phenomenon has a negative impact on the economy of countries, including Pakistan. The United Nations reports that one million skilled workers — doctors, engineers, accountants and managers — have left Pakistan in the last three years. They work in North America or the Middle East.

“Today, in the last 40 years, there is more desperation than ever before. There is a difference between people who want to leave for better opportunities and people who are desperate because there is nothing left,” said Veqar Islam, chief executive of Karachi-based technology company JBS. Pakistan is experiencing political turmoil that has hit the economy.

As a result, mass emigration has left banks, hospitals and multinational companies short of talented human resources. The prices of goods, such as cars and air conditioners, are now beyond the reach of most Pakistanis. Even the price of milk in Karachi exceeds the price of milk in France.

Pakistan’s neighbor India is no stranger to the brain drain phenomenon. Since the 2000s, medical and engineering professionals have been looking for opportunities abroad, particularly to the US. “India has been losing all types of workers at every skill level for over a decade. There is definitely a jobs crisis in India,” University of Massachusetts Amherst economist Jayati Ghosh told CNBC.

Likewise in Africa. In Nigeria, the 2022 African Polling Institute Survey found that 69 percent of Nigerians aged 18-35 would emigrate if given the chance. In 2019, the figure was only 39 percent. Professionals, skilled workers, and business people are choosing to leave for Western countries, such as Germany, the UK, Canada, or the US, causing the agriculture, transportation, and health industries to slump.

Former Nigerian President (2010-2015), Goodluck Jonathan even appealed to Nigerian youth not to leave amidst the various challenges facing Nigeria. Nigerians need to join hands in the development of the country.

“You don’t need to do japa (run away). We have to build this country together, and invest in it so that the youth can get jobs. We must not run away from our responsibilities. This country belongs to all of us, and we must not abandon it,” Jonathan said, as reported by Tribune Online, early January 2025.

Most emigrants seek employment in countries that provide adequate compensation. From Japan, Shoma Tanaka (33) moved to Australia for a working holiday program, working in a metal factory in Sydney. Japan has been grappling with low wages and stagnant economic growth for decades.

Unexpectedly, Tanaka earned much more than when he worked in his hometown. He was even able to buy a new car for his father. For comparison, the minimum wage in Tokyo is less than 12 Australian dollars per hour, while Tanaka's wage in Sydney is 45 Australian dollars per hour.

“I think it’s twice what I earn in Japan. It’s definitely better to have special skills. Even if you don’t, the minimum hourly wage is much higher so people can earn more money than in Japan,” Tanaka told ABC News in 2024.

The cost of living in Australia is higher than in Japan. However, Tanaka still manages to save money to compensate. In addition, he feels comfortable because his working hours are shorter than in his home country.

Nigerian electrical engineer Olotu Olanrewaju (24) also faces a dilemma about whether to stay or go. He loves his country’s culture, food and family mentality, but feels stifled professionally without the support of a state with adequate infrastructure. He wants to work in a safe environment, away from bad governance.

“I'm looking for greener pastures and better opportunities, rather than being stuck here in Nigeria,” he told the BBC in 2024.

Meanwhile, Adam (32), a French citizen, was looking for an anti-discriminatory work environment. He finally made a career in Dubai, United Arab Emirates. Adam was fed up with the experience of failing job interviews in France despite his good qualifications.

"I feel much better here than in France. We are all equal. You can have an Indian, Arab or French boss. My religion is more accepted," said Adam, who has often experienced Islamophobia and racism in France. (AFP/Reuters)