Govt to Prioritise Critical Industries with $64M Investment in Apprenticeship Boost

New Focus on First-Year Apprenticeships in Key Sectors to Tackle Skills Shortages and Boost Economic Growth.

The New Zealand Government has reaffirmed its commitment to addressing the country's skills shortages and rebuilding the economy with a significant investment in the Apprenticeship Boost initiative, Ministers Penny Simmonds (Tertiary Education and Skills) and Louise Upston (Social Development and Employment) have announced.

The $64 million funding allocation in Budget 2024 will ensure that Apprenticeship Boost continues, with a stronger focus on critical industries and targeted occupations that are vital to New Zealand’s economic growth and sustainability. The programme will now prioritize first-year apprentices in key sectors, providing businesses in those industries with financial certainty to hire and retain new apprentices.

“Focusing Apprenticeship Boost on first-year apprentices in targeted occupations gives employers the confidence to grow their teams, even in tough economic times,” said Minister Simmonds. “Our investment ensures that we foster a skilled workforce in sectors crucial to economic growth."

Under the National-NZ First Coalition Agreement, the Government will continue funding for eligible apprentices until the end of 2024. However, beginning 1 January 2025, Apprenticeship Boost will only apply to employers of first-year apprentices in sectors defined as essential for the country’s long-term success. These sectors include:

Building

Agriculture

Horticulture and Viticulture

Forestry Studies

Manufacturing, Engineering, and Technology

Process and Resources Engineering

Automotive Engineering and Technology

Electrical and Electronic Engineering and Technology

Aerospace Engineering and Technology

Maritime Engineering and Technology

Other Engineering and Technology

Human Welfare Studies and Services

Food and Hospitality

These targeted occupations are identified based on the New Zealand Standard Classification of Education (NZSCED) code, ensuring the programme addresses the most pressing skill gaps.

Employers can continue to claim funding for eligible first and second-year apprentices under the current system until 31 December 2024. From 2025, only first-year apprentices in the targeted industries will be eligible for the $500 monthly subsidy.

Minister Upston highlighted the importance of the initiative in supporting economic stability and getting more New Zealanders into skilled jobs. “Our economy is stronger when more people are in work. Apprenticeship Boost ensures that our young people are gaining skills and qualifications that meet the demands of our key industries,” she said.

To ensure the programme continues to meet New Zealand’s evolving needs, the Ministry of Education will review the targeted sectors every two years. The first review is scheduled for July 2027.

“These improvements reflect the Government’s commitment to delivering a strong economy and providing more opportunities for New Zealanders to succeed in industries essential for the future," said Minister Simmonds.