The economy has been BOOMING for years now, creating many serious labour shortages. (I was snatched up as an Engineer from the States with only a phone interview.)
The cost of living is more, but it doesn't seem to matter because the Kiwi lifestyle is a lot more laid back. No one is trying to impress the other guy with his new huge SUV. It goes to say that importing goods to a South Pacific island nation will cost more, eh?
Taxes are also higher, but at least it goes to things like universal health care (even tourists are entitled to free health care!) and social services instead of a HUGE military budget like in the states. (doesn't the Iraq war cost over $200 MILLION a day?) Homelessness and violent crime are just about non-existent down here.