Automotive Engineering has been included in a list of key sectors and targeted occupations that the government will prioritise under its Apprenticeship Boost scheme.

Investment in Apprenticeship Boost will prioritise critical industries and targeted occupations that are essential to addressing New Zealand’s skills shortages and rebuilding the economy, said Tertiary Education and Skills Minister Penny Simmonds and Social Development and Employment Minister Louise Upston.

“By focusing Apprenticeship Boost on first-year apprentices in targeted occupations, we are providing employers in critical industries with the certainty to hire and retain first-year apprentices, and confidently hire new ones,” Simmonds said.

“Having the confidence to build and strengthen your team is important, especially when many businesses are doing it tough right now.”

The National-NZ First Coalition Agreement includes a commitment to continue Apprenticeship Boost, with $64 million allocated to initiative in Budget 2024.

From 1 January 2025, Apprenticeship Boost will prioritise key sectors and targeted occupations that are crucial to New Zealand’s growth and sustainability. They are:

• 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

The targeted occupations are defined by the New Zealand Standard Classification of Education (NZSCED) code, ensuring that the initiative addresses the most pressing skill gaps and supports the long-term success of the economy.

Employers can continue to claim funding for eligible apprentices under the current settings until 31 December 2024. Employers receiving funding for second-year apprentices will continue to receive $500 monthly payments until the same date.

From 1 January 2025, only employers of first-year apprentices in targeted industry areas will be eligible for the $500 monthly subsidy.

“Industry training plays an important part in making sure our young people have more opportunities to get ahead through work, but we need to make sure the skills and qualifications they are gaining are also in sync with what our country needs,” said Upston.

“Targeting Apprenticeship Boost makes sense as it will strengthen the long-term success of our key industries as we grow a more skilled workforce.”

MTA says more is needed

Motor Trade Association said employers need more support when it comes to training in order to reduce a reliance on migration.

MTA chief executive Lee Marshall said while it’s pleasing to see the automotive sector is still eligible for the $500 a month subsidy, it betrays a lack of acknowledgement of the costs employers incur in industry training.

“It’s welcome and every bit helps, but five hundred bucks a month is detached from reality,” he said.

Marshall said the automotive industry wants to hire New Zealanders for roles and strongly supports industry training.

“And sure, the employer accepts they should carry a cost. But what they get from Government and what they fund themselves is both imbalanced and unacknowledged. If employers can’t afford to take on apprentices, they’ll search for qualified technicians overseas – simple as that.”

The Ministry of Education will review the targeted sectors every two years to ensure the programme continues to address skills shortages and aligns with New Zealand’s evolving economic priorities. The first review is scheduled for July 2027.