Setting schools up to succeed in vocational education

Dr Michael Johnston
Insights Newsletter
1 May, 2026

Is it better to be a policy analyst or a plumber?

In the minds of many New Zealanders, university degrees carry greater status than industry qualifications. But many tradespeople earn as much, or more, than an average university graduate. Many tradies also go on to start highly successful businesses.

Financially, the plumber may well come out ahead of the public servant. Why, then, are industry qualifications not valued more highly than they are?

The root issue is cultural bias in favour of academic learning, but the traditional school curriculum also contributes to the higher status of degrees. Most subjects are derived from university disciplines, creating a mindset that school is preparation for university.

Things might be about to change. Under the government’s proposal for new school qualifications, students will be able to study ‘industry-led’ subjects in Years 12 and 13. The goal is to improve the quality, status and uptake of vocational education in schools.

It is a worthy aim – but challenging to deliver on. My new report for the Initiative, Working Knowledge, makes recommendations for policy settings that will help make industry-led subjects a success.

The first challenge will be getting the curricula right. Industry Skills Boards (ISBs) will write them. That should ensure that the industry-led subjects are well aligned with the needs of business. But ISBs must consult with schools and subject associations to ensure that they are also appropriate for secondary students and deliverable for schools.

On the implementation side, few schools are set up to offer strong vocational programmes. They should receive per-enrolment funding to support industry-led subjects. Schools could use it to employ additional staff, enrol students part-time in tertiary institutions, or engage employers to offer work-integrated learning opportunities.

The funding should be redirected from the university component of the fees-free tertiary entitlement. That expensive scheme has done nothing to boost university enrolments.

Because many students see vocational education as low-status, they may need incentives to consider industry-led subjects.

Industry-led subjects could potentially yield industry certificates alongside contributing to school qualifications. And an Industry Award, equivalent in status and workload to University Entrance, would provide a clearly signalled pathway from school to industry training.

Industry-led subjects are a once-in-a-generation opportunity to change the game for vocational education. We owe it to our young people to get it right.

Explore Michael’s research through our new research note and our NZ Herald column.

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