Economic, mental strain drive 80,000 Kiwis to Australia

Nearly 80,000 New Zealanders have relocated to Australia in 2024 amid growing economic strain and the allure of higher wages, while those remaining in the country face mounting financial pressures that are impacting their mental health, according to new data from TELUS Health.

The latest TELUS Mental Health Index highlights significant challenges for New Zealand's workforce, revealing increased emotional distress linked to financial instability. Household costs continue to rise and stagnant savings are pushing many workers towards declining mental health, leading to concerns among experts about the societal and workplace repercussions of such trends.

Key data from the report

The TELUS Mental Health Index found that two in five New Zealand workers have no emergency savings. Those without savings had a mental health score of 41.9, significantly lower than the 70.1 reported by those who could maintain a financial buffer. Over half of the employees surveyed, 54%, said that financial concerns are their primary source of personal stress.

The report further revealed demographic and regional disparities. Women and parents consistently reported lower mental health scores than the national average, with differences of seven points or more. Regionally, Waikato recorded the lowest average score at 58.0, while Gisborne and Hawke's Bay reported the highest at 63.2. Northland showed notable improvement, recording a 4.7-point increase since January, at 60.4, with workers on the South Island generally reporting higher well-being (61.9).

"The current economic climate coupled with job instability and mental health challenges is putting immense pressure on our workforce. With financial concerns topping the list of personal stress for over half of working people in New Zealand, we're witnessing a significant ripple effect across communities and workplaces. Women and individuals in regions like Waikato and Northland are bearing the brunt of this economic uncertainty, underscoring the critical need for tailored mental health support - a one-size-fits-all approach simply won't suffice in addressing these complex, localised challenges."

This perspective was shared by Julie Cressey, General Manager New Zealand for TELUS Health, pointing to the growing need for workplace interventions that move beyond generic wellness initiatives.

Impact of workplace culture

The research indicates that the work environment has a substantial effect on mental health. Workers in family-friendly workplaces—accounting for 56% of organisations—reported mental health scores of 62.8, over two points above the national average. The impact is more pronounced for parents: those feeling supported by colleagues had a score of 64.5. These findings indicate that a supportive organisational culture plays a fundamental role in employee wellbeing.

Nonetheless, 31% of workers surveyed said their mental health negatively affects their productivity, and 40% reported feeling overwhelmed. Mental health risk affects 37% of respondents, with anxiety scoring worst among sub-indices at 53.4. Parents indicated particular concern for the well-being of their children, scoring seven points below the national average. Additionally, 35 per cent of parents expressed guilt about the limited time they spend with their families, and a high workload was identified as a main workplace stressor for 31% of employees.

Gender disparity persists, with women's mental health scores (58.9) consistently trailing those of men (62.4).

Global context and commentary

While New Zealand workers reported an average mental health score of 60.6 during the second quarter of 2025, their Australian counterparts scored 63.0. Other countries included in the Index were Singapore (62.9), United Kingdom (64.7), South Korea (56.1), Canada (63.1), United States (69.9), and Europe (62.4). The Index, which converts survey responses into scores between 0 and 100, designates scores below 50 as indicating distress, scores between 50 and 79 as indicating strain, and scores above 80 as indicating optimal mental health.

"In an era where financial insecurity and mental health disparities remain prevalent, employers who champion family-friendly workplaces and prioritise employee wellbeing cultivate more engaged teams and drive positive mental health and wellbeing outcomes. Implementing wellbeing strategies that make workers feel supported and cared for is not only beneficial for employees, but crucial for sustaining organisational vitality, fostering a healthy company culture and ultimately driving business success."

These remarks were provided by Paula Allen, Global Leader, Research & Client Insights, TELUS Health, underlining the organisational imperatives of caring for employee mental health.

Methodology and scope

The TELUS Mental Health Index survey was conducted online in March 2025, comprising responses from 1,000 New Zealand residents who had been employed within the last six months. The data has been statistically weighted to reflect the country's regional and gender composition.