Developing talent

The Government wants to maximise the potential of New Zealand’s most powerful asset – its people. This means raising the earnings potential of New Zealanders and their living standards. It also means ensuring businesses can access the people needed to help them compete globally and grow.

A highly skilled workforce supports the emergence of innovation, new products and new ventures. Businesses need access to workers with the right kinds of skills to develop new ideas and technologies, enabling economic growth. Conversely, where citizens do not have basic skills (e.g. students leaving school without qualifications or without basic literacy and numeracy skills), their potential earnings are limited and their reliance on welfare and other supports is often increased.

The upward trajectory of the Māori population will play a significant role in shaping the nation’s demographic makeup and impact workforce dynamics. While the European population is ageing quickly, the Māori population is very young, resulting in an increasing share of Māori in the labour force each year.

Ensuring education, training and immigration settings support economic growth

All parts of our skills system need to work together to help build high performing businesses and lift productivity.

The responsiveness and relevance of tertiary education must be improved, so that students learn skills that are valued in the workplace, and that allow them to develop new technologies and commercialise them.

The Government is focused on raising educational achievement in schools to ensure young people have the knowledge, skills and confidence they need to succeed in further education and training, and in the workforce. This means lifting numeracy and literacy skills as well as ensuring students are present to learn. Results from the Programme for International Student Assessment (PISA) show a marked decline in New Zealand school achievement since 2000 (see Figure 2). The Government has set a target of 80 per cent of Year 8 students being at or above the expected curriculum level for their age in reading, writing and maths by December 2030, and a target of 80 per cent of students being present for more than 90 per cent of the term by 2030.

The Government has introduced structured approaches to literacy and mathematics in New Zealand’s schools, with a focus on teaching the basics brilliantly. Consistent assessment tools are also being introduced so students who need targeted interventions will get them earlier.

New Zealand's domestic skills pipeline needs complementary immigration settings to attract the skills and talent needed to drive long-term business performance, including international students with valuable knowledge and skills.

New Zealand’s skills system needs to support New Zealanders to acquire skills that equip them for good jobs. This means redesigning the Vocational Education and Training system and immigration settings to respond to New Zealand’s labour and skills needs, in tandem with improving New Zealand’s domestic employment and educational outcomes. The Government is reforming the vocational education and training system to ensure leaners can access relevant training, whether through an institute of technology, polytechnic, private training establishment or in their workplace.

At the same time, the Government has reformed immigration policy to ensure it focuses on attracting highly skilled migrants that fill skills gaps in local businesses. Benefit dependency has increased to 12.6 per cent of the working age population in December 2024 from 9.3 per cent in September 2017. The Government has taken a number of steps to move people from welfare dependence into work, with a particular focus on young job seekers because they are at greatest risk of staying on a benefit long-term. The introduction of sanctions and other consequences for those who do not fulfil their obligations to prepare for or find a job is delivering results.

There is also scope to better support people to get into and stay in work through improvements to the early childhood education and care system.

For example, childcare providers have highlighted that the regulatory system stops them from offering childcare that is flexible and adaptable to labour market needs.

The Government will improve education and skills performance

The Government will continue its commitment to Teaching the Basics Brilliantly, by lifting school attendance and achievement in core skills such as reading, writing, maths and science, to reverse the long-term decline in skill levels. The introduction of a new National Curriculum is laying the foundation for the transformation of New Zealand’s education system. Structured literacy will improve achievement and allow for earlier intervention when a student needs support. Targeted interventions will deliver support to students who are falling behind to ensure they have every opportunity to catch up and stay on track. A standardised approach to assessment will track the progress of students in a more consistent manner. The introduction of charter schools will provide more choice and diversity in the education system, allowing students to learn and grow in ways that are specific to their needs.

First steps of 100-day plan for education: removing distractions and teaching the basics brilliantly(external link) — Beehive.govt.nz

Relentless focus on literacy and numeracy at school(external link) — Beehive.govt.nz

More support in reading and maths for Kiwi kids(external link) — Beehive.govt.nz

Govt delivers consistency for assessing Kiwi kids(external link) — Beehive.govt.nz

First charter schools open for 2025(external link) — Beehive.govt.nz

Māori students will be supported towards better outcomes in the classroom through the Māori Education Action Plan, which includes a new Te Marautanga o Aotearoa curriculum, the roll-out of structured literacy in te reo Māori, and further steps to raise achievement. Ongoing investment into Pacific education is aimed at closing the equity gap and raising achievement, through programmes for principals who are leading schools with high Pacific student numbers and other targeted support.

Govt delivers Māori Education Action Plan(external link) — Beehive.govt.nz

The Government is creating a more responsive vocational education and training system, by returning decision-making to regions and enabling greater industry input into work-based learning. The redesigned system will better meet the needs of learners, industry, and the economy. It includes re- establishing regional polytechnics that are financially sustainable.

Vocational education and training decisions support return to regions(external link) — Beehive.govt.nz

The Government will ensure that immigration settings attract the right migrants to fill skills and labour gaps through changes to the Accredited Employer Work Visa, reviewing skilled residence settings, and scoping a new Parent Boost Visitor Visa to support skilled migration.

Securing the skills and experience New Zealand needs(external link) — Beehive.govt.nz

The Government is exploring how New Zealand’s university system can better cultivate talent, expand opportunities, and fuel scientific innovation to drive economic growth. The University Advisory Group’s advice will inform policies to strengthen and future-proof the sector.

University Advisory Group(external link)

The Government is reducing the regulatory barriers to affordable childcare and putting an appropriate and modern regulatory system in place.

Speech to Early Childhood Education sector – Reducing red tape and barriers to ECE(external link) — Beehive.govt.nz

The Government is ensuring the welfare system is supporting people who can work into employment. Paid employment offers the best opportunity for people to achieve social and economic wellbeing. A target has been set to reduce the number of people on Jobseeker Support benefits by 50,000 by 2030 and policies are being designed to support this target.

Green light for Welfare that Works(external link) — Beehive.govt.nz

Government's actions

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