Wellington city’s 2026 population decrease worst in the country; can the tech sector spark growth?
Wellington is shrinking faster than any other city in New Zealand, with thousands leaving as jobs are cut from the public sector – but there’s a growing belief the tech sector could be the answer to stopping the exodus.
Latest data from Stats NZ shows that in the year to June, Wellington City’s population dropped from 210,800 to 208,300 people, a 0.6% reduction on top of last year’s 0.3%. It was the largest drop in the country.
Auckland meanwhile topped the list with 1.2% growth in population.
Wellington’s best year was 2020, with a population of 214,200 people.
Wellington hasn’t had an easy ride; early this year it was reported there were nearly 10,000 fewer jobs than at the last general election, and in May, Finance Minister Nicola Willis announced a further 9000 public service jobs were to be cut.
The public service makes up 23% of Wellington’s workforce.
Wellington Mayor Andrew Little told the Herald, “The city has undoubtedly felt the impact of recent reductions in that workforce”.
He said there were other strengths the city could champion for growth, including the technology sector.
“The tech sector continues to grow, with companies like Revolut choosing to establish a presence in the city; one of our biggest success stories in recent years, Hnry, has put its name on the stadium, the biggest building in the city.”
Hnry chief executive and co-founder James Fuller has expanded his business to Sydney and London but still keeps the headquarters in Wellington.
He’s keen to invest back into the city which supported him and his wife in the business’ beginnings.
Hnry currently employs 105 people and Fuller is passionate about being an “in office business”; getting people in the city to support other businesses through what has been a tough time for the city.
He said that by investing in the stadium naming rights, he hopes to create a positive space for locals and a home where their sole traders feel like they belong.
“It’s great to see the sort of initiatives that are happening, not just businesses, but also community groups and people who are engaging to try and uplift Wellington in a positive way.”
He said there’s optimism about the capability of the local technology sector with the growing number of businesses.
“It’s exciting to see what’s going to happen with the tech sector in a way that maybe we haven’t seen for three or four years now.”
Fuller feels positivity has started to return to Wellington over the past six months.
“There’s a bit of self-confidence and maybe it’s coming from realising that central government is not going to solve Wellington’s problems and so maybe Wellington has to solve its own problems.”
Another fintech company with a Wellington base is Revolut, which this week became the first financial technology company to be officially registered as a bank in New Zealand. It has more than 80 million customers worldwide.
“A lot of those emerging and successful businesses choose to be based here in Wellington because of the attractive lifestyle and amenities that Wellington offers,” Little said.
Forté Recruitment works in both the public and private sector in Wellington and thinks the city’s co-dependency on the public service is a thing of the past.
Director Anita Murdoch believes the city’s turned a corner for employment after the “absolute worst” in 2024 and the private sector is creating its own opportunities to better the city.
“It’s been tough but there have been some really good things that have come out of all the hardship.”
The agency itself had to find 20% of its work outside Wellington due to the “terrible state” of the market a few years ago.
Murdoch said the mood has since changed, and Wellingtonians are not accepting the negative rhetoric anymore.
“There’s a greater sense of determination to help Wellington to remain positive and to keep moving forward.”
Murdoch said applicant-to-role ratios have levelled out, and they’ve seen a few months of “flurry activity”, particularly in the technology space.
The market is quieter now due to the election, but she expects it will be back to normal by February.
Murdoch is worried about younger workers and succession planning in the city, which she says “can be disastrous”. She says with limited graduate roles available, young people do head overseas.
About 1300 Wellingtonians left for overseas in the past year, according to Stats NZ – the largest loss in the country.
Murdoch thinks graduates are leaving solely for job opportunities, with it far easier to get a job in Australia according to the young people she speaks to.
She said people used to travel for one or two years, then come home and establish themselves, but if New Zealand is not careful, they could be gone for 10 or so years, impacting the entire market.
Murdoch now has to recruit Kiwis back from the Australian market to find people for experienced roles.
“One of the things that we’re trying to say to New Zealand employers is if you’ve got any opportunity to give a grad even a short-term contract for a piece of work or an internship or work experience.
“We’ve got to change our mindset a bit and be willing to give these kids opportunities so that we don’t lose them.”
Affordability is another challenge in the capital, according to the mayor; water bills have increased 13.3% this year under new water entity Tiaki Wai, with an average total annual bill of $2390.
This year Wellington City Council confirmed the lowest rates rise in six years at 5.9%.
“The council is focused on keeping rates increases as low as possible while making Wellington an attractive place to live, work, invest and do business,” Little said.
Seven cities nationally experienced growth in the past year, while Wellington, Dunedin, Nelson, Palmerston North, Napier and Porirua had losses.
This is a flip from 2024 when all cities had population growth, although Wellington City and Nelson were the lowest.
Auckland had the largest gain in international migrants at 13,000, followed by Hamilton (1900).
Wellington City lost the most people overseas, with a decrease of 1300, while Christchurch gained 1300, and the highest net number of Kiwis moving to the city.
After Auckland, Christchurch is home to the most people with 422,400, then Wellington at 208,300 and Hamilton at 193,300.
Over the past 10 years, Christchurch City grew by 12.76%, more than 11 times Wellington City’s 1.12% growth during the same time.
Latest figures show national unemployment has risen to 5.7%, the highest since 2015.
Wellington’s unemployment rate however is 4.9%, putting it below Auckland, Waikato, Gisborne/Hawkes Bay, Manawatu-Whanganui, Southland and Northland - which was the worst at 8.3%.
Little expects the completion of facilities like the redeveloped Town Hall in the new year, and the recently reopened central library, will help boost Wellington’s positivity.
“The new library Te Matapihi is bringing renewed energy and dynamism to the central city, bringing the beating heart back to the city.
“We will continue working to build on these strengths and ensure Wellington remains an attractive and dynamic city.”
Grace Symmans is a Wellington-based reporter who covers news in the capital. Grace joined NZME in 2025 as a producer for Wellington Mornings on Newstalk ZB. She can be emailed at grace.symmans@nzme.co.nz.