A major overhaul of Aotearoa’s apprenticeship system is being proposed, with calls for degree-level apprenticeships, access to student loans and allowances, and greater support for employers as new figures reveal a sharp decline in the number of New Zealanders entering trade and vocational training.
A new white paper from Skills Group, The Future of Apprenticeships, argues that after seven years of structural changes to vocational education, the focus must now shift towards improving opportunities for apprentices and the businesses that train them.
Skills Group Chief Executive Rosanne Graham says the current apprenticeship model has failed to keep pace with changes in technology, industry and workforce requirements.
The organisation argues that changing the administration of vocational education has done little to address the practical challenges facing learners and employers.
Apprenticeship Numbers Fall as Skills Shortages Loom
The report comes against a concerning backdrop for New Zealand’s future workforce.
According to Ministry of Education figures cited in the white paper, total apprenticeship numbers fell by 14 percent between 2024 and 2025, while the number of new apprentices entering training dropped by 24 percent.
Completion rates have also deteriorated significantly.
The proportion of apprentices completing their qualifications within five years has fallen from 54 percent among those who started in 2016 to just 40 percent for those who began in 2021.
The figures raise questions about whether New Zealand is adequately preparing the skilled workforce needed for construction, infrastructure, engineering, manufacturing and emerging industries.
Skills Group argues that workforce development needs to be treated as a long-term economic priority rather than something addressed only when shortages become critical.
Earn While You Learn — All the Way to a Degree
One of the most significant proposals is the introduction of advanced and degree-level apprenticeships.
Currently, New Zealand apprenticeships are predominantly focused on Level 4 qualifications.
The proposed changes would allow workers to progress into higher technical and professional qualifications while remaining in paid employment.
The report points to England, where apprenticeships at Level 4 and above have grown from 13 percent of new starts in 2017/18 to 40 percent in 2024/25.
Degree-level apprenticeships at Levels 6 and 7 now account for approximately one in six apprenticeship starts in England, according to research referenced in the paper.
Skills Group believes a similar approach in New Zealand could strengthen career progression, improve the standing of vocational education and help industries develop workers with more advanced skills.
Student Loans and Allowances for Apprentices
Another major recommendation would give apprentices access to the same student loan and allowance arrangements available to other eligible tertiary students.
The paper questions why people undertaking tertiary qualifications through workplace training should face different financial support arrangements from those studying through traditional academic pathways.
While apprentices generally earn wages during their training, they can still face costs associated with learning, equipment, travel and qualification requirements.
Skills Group argues that recognising apprenticeships as tertiary education should also mean providing more equitable access to financial assistance.
Any expansion would require the Government to determine eligibility, funding arrangements and how assistance would interact with apprentices’ employment income.
New Opportunities for Māori Rangatahi
The proposed changes could have particular significance for Māori rangatahi and communities where access to employment, training and higher education remains challenging.
Work-based learning can provide opportunities for young people to gain qualifications while earning an income, supporting whānau and developing practical skills.
Advanced apprenticeships could also create additional pathways for Māori workers already employed in trades, infrastructure, technology and other industries to progress into higher-level qualifications without leaving the workforce.
For Māori businesses, iwi organisations and regional employers, a more flexible apprenticeship model could support the development of locally trained workers and strengthen long-term economic capability.
The report’s recommendation for targeted support for under-represented learners could also provide opportunities to address barriers affecting Māori participation and completion.
However, the effectiveness of such measures would depend on their design, funding and delivery, including whether training pathways respond to the needs of Māori learners and employers.
Employers Could Be Rewarded for Successful Training
Skills Group is also proposing changes to how employers are supported.
Rather than focusing primarily on the number of apprentices enrolled, the paper recommends rewarding businesses that provide training and successfully support apprentices through to qualification completion.
The report also calls for more flexible arrangements between employers and training providers, allowing them to work together more effectively.
Other recommendations include recognising skills workers have already gained, funding specific competencies rather than only complete qualifications, and allowing apprentices to progress when they demonstrate the required skills.
Such changes could help experienced workers avoid unnecessary repetition while making training more responsive to industry needs.
Eight Recommendations for Reform
The Skills Group white paper identifies eight priorities for changing the apprenticeship system:
- Fund and recognise individual skills and competencies rather than focusing solely on complete qualifications.
- Allow apprentices to progress through demonstrated competency instead of time spent in training.
- Introduce advanced and degree-level apprenticeship pathways.
- Improve flexibility across industries and recognise existing skills.
- Modernise funding arrangements to support collaboration between employers and training providers.
- Extend access to student loans and allowances to eligible work-based learners.
- Provide incentives for employers who recruit, train and successfully support apprentices to completion.
- Introduce targeted assistance for under-represented learners to improve participation and qualification completion.
A Workforce Challenge for the Next Government
With the general election approaching, the future of vocational education and workforce development is likely to feature in wider discussions about productivity, employment and economic growth.
New Zealand faces ongoing challenges in developing the skilled workers required to support housing construction, major infrastructure projects, emerging technologies and regional development.
For Māori communities, the debate also raises important questions about how training systems can support rangatahi, Māori-owned businesses and iwi economic aspirations.
Skills Group maintains that the country does not need another major restructuring of vocational education.
Instead, it wants practical changes that make apprenticeships easier to access, more flexible, better supported and capable of delivering qualifications at every level.
The white paper puts a clear challenge before policymakers: if New Zealand wants a highly skilled workforce for the future, it must make it easier for people to enter training, earn while they learn and progress throughout their working lives.
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