Upton admits brain drain 'possibility' for New Zealand

'It may well mean that we lose a range of people, including some of our best and brightest'

Upton admits brain drain 'possibility' for New Zealand

Social Development Minister Louise Upston said a brain drain is a "possibility" as more employers lay off staff and New Zealand's economy enters a recession.

"Look, that's a possibility. Unfortunately, Treasury had forecast jobseeker numbers to go up, with the peak being January next year," Upston told reporters asking about the matter, according to TVNZ.

"So, people who are in that set of circumstances — and I really feel for them — have to make some tough choices. For some, it may well mean that we lose a range of people, including some of our best and brightest."

She made the remarks as New Zealand slips into a recession after the GDP shrank by 0.1% in the December quarter, and as more employers across New Zealand announce job cuts and restructuring.

The Employers and Manufacturers Association said it has been receiving an average of 30 calls a week from businesses looking help around restructuring and redundancy.

But Upston said this was a reality that New Zealand has to face amid a recession, according to TVNZ.

"Well, it's challenging and unfortunately, the realities of the recession mean that there will be businesses and organisations that have to reduce their staff numbers, and then it's for those individuals and their families to make tough choices about what they do next," she said.

According to the minister, the government plans to address the cost-of-living crisis first and take steps to rebuild the economy.

"And if people have confidence that we are on the right track and the economy is rebuilding then hopefully fewer people will make that decision that there are more opportunities offshore," she said in the report.

'Pretty disgraceful' remarks about brain drain

Upston blamed the current economic situation to the previous administration, led by former Prime Minister Chris Hipkins, who called her out for her remarks, according to TVNZ.

"To see a senior government minister predicting that we're going to have a brain drain and effectively shrugging their shoulders… It's pretty disgraceful," said Hipkins, who is now head of the opposition.

Hipkins added that it was "wrong" for a government minister to say they're not going to do anything about their policies that will likely result to people leaving the country.

"The government's job is to make New Zealand a place where New Zealanders want to live and work and to stay," Hipkins stated in the report.

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