Media release: A tradie can earn as much as a policy analyst, so why does New Zealand still treat university as the gold standard?
Wellington (Tuesday, 28 April 2026) - A heavy diesel mechanic earns roughly the same as a policy analyst, qualifies in the same time and graduates with little or no debt. Yet most New Zealanders still regard university as superior to industry training and our school qualifications system has quietly reinforced that bias for decades.
That could be about to change. A new report from The New Zealand Initiative argues the country has a rare opportunity to correct an imbalance that has long undervalued vocational education.
The report, Working Knowledge: Designing Industry-Led Subjects for Students and Schools, examines the Ministry of Education's proposal to introduce industry-led subjects as part of the new school qualifications system. With New Zealand facing persistent skills shortages in construction, engineering and healthcare, the stakes for getting this right are high.
To make the most of the opportunity, industry-led subjects must be carefully designed in close collaboration between Industry Skills Boards and school subject associations.
"Schools have never had formal national curricula for vocational education in New Zealand. Industry-led subjects will change that but they must be designed with schools and students in mind, not just the needs of industry," said Dr Michael Johnston, report author.
The report's key recommendations:
- Fund industry-led subjects through per-enrolment funding to schools, financed by redirecting the university component of the fees-free tertiary entitlement, a move that will likely prove controversial but directly backs where skills shortages are most acute.
- Mandate Industry Skills Boards to consult closely with schools and subject associations when developing curricula and assessment programmes.
- Design industry-led subjects in pairs so students can earn 40-credit industry certificates alongside their school qualifications.
- Establish an Industry Award equivalent in status and workload to University Entrance to provide a clearly signalled, respected pathway from school to industry training.
The research note "Working Knowledge" is attached below.
ENDS
Dr Michael Johnston is available for comment.
P: 021 022 73415
E: michael.johnston@nzinitiative.org.nz
Or to schedule an interview, please contact:
Jamuel Enriquez, Marketing and Communications Manager
E: jamuel.enriquez@nzinitiative.org.nz
P: 021 022 34451
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About The New Zealand Initiative
The New Zealand Initiative is an evidence-based think tank and research institute contributing to public policy discussion.
Supported by the nation’s leading visionaries, business leaders and political thinkers, we are committed to making New Zealand a better country for all its citizens with a world-class education system, affordable housing, a healthy environment, sound public finances and a stable currency.
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