A major shake-up of New Zealand’s apprenticeship system is being proposed, with Skills Group warning that falling training numbers, declining completion rates and outdated qualifications could leave the country struggling to develop the skilled workforce needed for the future.
A new white paper, The Future of Apprenticeships, is calling for degree-level apprenticeships, better financial assistance, stronger employer incentives and more flexible training pathways.
Skills Group argues that after years of restructuring the vocational education sector, the focus must shift towards making apprenticeships more accessible, affordable and relevant to a rapidly changing economy.
The organisation says the traditional apprenticeship model has not kept pace with technological change, industry requirements or the growing demand for advanced technical skills.
Apprenticeship Numbers Plunge
The report highlights a concerning decline in participation.
According to Ministry of Education figures cited by Skills Group, total apprenticeship numbers fell by 14 percent between 2024 and 2025, while new apprenticeship enrolments dropped by 24 percent.
Completion rates have also deteriorated.
Only 40 percent of apprentices who began training in 2021 completed their qualifications within five years, compared with 54 percent of those who started in 2016.
The figures raise questions about New Zealand’s ability to train enough skilled workers for construction, engineering, manufacturing, infrastructure and emerging industries.
Skills Group says the country cannot afford to treat vocational education as a secondary option when skilled tradespeople and technicians are essential to economic growth.
Earn While You Learn — Right Through to a Degree
One of the most significant recommendations is the introduction of advanced and degree-level apprenticeships.
Currently, most New Zealand apprenticeships lead to Level 4 qualifications.
Skills Group wants workers to have opportunities to progress into higher-level technical and professional qualifications while remaining in paid employment.
The report points to international examples, including England, where higher-level apprenticeships have become an increasingly important part of workforce development.
The proposed model would allow workers to combine practical experience with advanced education, potentially opening new career pathways without requiring them to leave employment for full-time study.
It could also provide businesses with opportunities to develop specialist expertise within their existing workforce.
Student Loans and Allowances for Apprentices
Another major recommendation is extending student loans and allowances to eligible apprentices.
Skills Group argues that workplace learners should have access to financial support comparable to that available to students undertaking other forms of tertiary education.
Although apprentices earn wages, many still face significant costs for tools, equipment, transport and training.
Financial pressures can be particularly challenging for young workers, those supporting families and people living in regions where travel to training facilities is expensive.
The proposed changes would require new eligibility and funding arrangements, including consideration of how student assistance would interact with employment income.
What Could It Mean for Māori Rangatahi?
The proposals could have particular significance for Māori rangatahi, especially those seeking pathways into employment without taking on the costs associated with full-time tertiary study.
Apprenticeships provide opportunities to earn an income, develop practical skills and gain recognised qualifications while remaining connected to whānau and community.
Expanding those pathways into degree-level qualifications could also help Māori workers progress into engineering, construction management, technology and other higher-skilled occupations.
For Māori businesses and iwi organisations, stronger apprenticeship pathways could support workforce development and create opportunities to train local people for major infrastructure, housing and economic development projects.
However, ensuring Māori participation will require more than simply expanding qualification options.
Training must also be accessible, culturally responsive and supported by employers who understand the circumstances and aspirations of Māori learners.
Skills Group is recommending targeted assistance for under-represented groups to improve both participation and qualification completion.
Employers Need More Support
The white paper also calls for changes to the way businesses are supported to employ and train apprentices.
Skills Group wants funding arrangements that recognise successful training outcomes rather than focusing primarily on enrolment numbers.
The organisation argues that employers who invest time and resources in developing workers should receive stronger incentives, particularly when apprentices successfully complete their qualifications.
Other recommendations include recognising skills workers have already acquired, allowing faster progression when competencies are demonstrated and improving collaboration between employers and training providers.
The proposed changes could help reduce unnecessary training delays while making qualifications more responsive to the needs of individual industries.
A Major Challenge for the Next Government
The white paper arrives as New Zealand prepares for the November general election, with employment, economic growth, housing and infrastructure investment prominent campaign issues.
A skilled workforce will be essential to delivering major construction projects, expanding housing supply, maintaining infrastructure and supporting regional development.
Skills Group believes the answer is not another wholesale restructuring of vocational education but practical reforms that make workplace learning more attractive and effective.
Its recommendations include degree-level qualifications, financial support for apprentices, stronger employer incentives and training that recognises skills rather than simply time spent in a programme.
For Māori communities, the challenge is ensuring these opportunities translate into meaningful employment, higher qualifications and stronger economic outcomes for whānau.
The message from Skills Group is that New Zealand needs to rethink what an apprenticeship can be — moving beyond traditional trades training towards a system where workers can earn, learn and progress to the highest levels of qualification throughout their careers.
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