The city attracting more than half of NZ's international students

But a new report warns the city is struggling to hold onto that talent after graduation. (Source: 1News)

Auckland is attracting more than half of New Zealand's international students, but a new report warns the city needs to do more to turn that success into skilled workers and long-term economic growth.

Almost 56,000 international students are now studying in Auckland, with enrolments in the region growing 14% in 2025 as the international education sector continues its post-pandemic recovery.

But the latest State of the City report identifies what it calls a "conversion gap": Auckland is proving successful at attracting international talent, investment and visitors, but is not always converting those advantages into people and businesses that remain in the city.

For AUT Vice-Chancellor Professor Damon Salesa, the challenge is increasingly about what happens after international students arrive.

"The key challenges are keeping them here in the city, wanting to become Kiwis and contribute to Aotearoa," he told 1News.

"And I think that is about delivering opportunity, making sure that they see a future for them and their whānau and making sure that we recognise and celebrate who they are when they come."

Education New Zealand figures show 55,910 international students studied in Auckland in 2025, representing around 55% of New Zealand's total.

Auckland enrolments increased 14% during the year.

Nationally, 92,580 international students were enrolled with New Zealand education providers in 2025, an 11% increase on the previous year and equivalent to around 80% of the pre-Covid peak.

A map showing the number of international students enrolled with New Zealand education providers in 2025. (Source: Education NZ)

At AUT alone, there are around 3800 full-time international students from more than 90 countries.

They include PhD student Jingrui Han, who came to New Zealand from China to study design and the environment.

Han told 1News Auckland's international character, lifestyle and natural environment were among the things he valued about studying here.

"I really hope I can live here. Auckland, I think, is a very international city," he said.

AUT PhD student Jingrui Han.

But whether he remains after completing his PhD is a more complicated question, with the size of New Zealand's creative industries among the factors he will need to consider.

"This is not a big market for me. That is the reason I still need to think."

For other students, the intention to stay is already much clearer.

Engineering technology student Daniel Pais.

Engineering technology student Daniel Pais said he planned to remain in New Zealand after graduating.

"I do plan on staying here. I do plan on building a life here, getting into the workforce," he said.

Pais said New Zealand's work-life balance was also part of its appeal.

AUT health science student Priscilla Zhang.

Health science student Priscilla Zhang is similarly looking at how the skills she is developing could eventually be used here.

"I'm eager to help others and support others because I have already received so much support and love here," she said.

"I feel it's my time to contribute and give something back."

High demand jobs, critical shortages

AUT Vice-Chancellor Professor Damon Salesa.

Salesa said international students were particularly valuable because many were choosing qualifications in areas where New Zealand needed more skilled workers.

"They study diverse things, but what's particularly special is they tend to gravitate to the places where New Zealand has priorities," he said.

"They gravitate to science, technology, engineering, to the health professions.

"And these are the places where we're experiencing high demand or critical shortages."

AUT (file image).

That makes retaining graduates more than an issue for universities.

Salesa said international students needed confidence that opportunities would exist once they completed their qualifications.

"We want high predictability from immigration and we want a predictable job market so that talent can find opportunity within industry and employment in New Zealand," he said.

"And if they don't stay here, we'll be losing potential for New Zealand."

Eligible international graduates can currently receive post-study work visas allowing them to remain and work in New Zealand for up to three years, depending on their qualification.

Changes taking effect from November will further expand post-study work eligibility for some graduates.

Retaining talent a challenge

The international student challenge is one example of a much broader issue identified by the State of the City report.

Auckland is New Zealand's primary international gateway and accounts for close to 40% of national GDP.

The report argues the city has considerable success attracting people, investment and business activity, but needs to become better at retaining skilled workers, helping companies scale and converting those advantages into higher productivity.

Committee for Auckland executive director Rupert Hodson told TVNZ's Breakfast that challenge extended beyond international students.

"Our challenge is really holding those companies as they grow and retaining the talent and continuing the investment," he said.

The report also points to encouraging signs.

Auckland has risen to 17th out of 300 cities in a ranking of rising technology ecosystems, while more than $6 billion of private investment is in the city-centre pipeline.

But its authors argue attracting people and capital is only the first step.

For Auckland's growing international student population, the next test is whether the city can provide enough opportunity for more of those who arrive to study to eventually call New Zealand home.

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