Earn As You Learn: Govt Training Initiative Expands Nationwide to Address NZ’s Skills Gap
A Government-backed Earn As You Learn training programme, hailed by employers as a “game-changer,” is being rolled out nationwide following a successful pilot in Waikato. The initiative is designed to address one of New Zealand’s most pressing economic issues — a growing shortage of skilled workers across manufacturing, engineering, and logistics.
With the Waikato pilot delivering a completion rate of more than 90%, the programme has demonstrated that combining classroom learning with paid work experience can transform how the country prepares its future workforce. Backed by industry leaders and education providers, the expansion signals a significant shift toward more practical, employment-focused education models.
Responding to an Industry in Crisis
New Zealand’s manufacturing sector, which contributes around 10% of GDP and underpins 60% of the country’s exports, is facing a looming workforce crisis. A recent national forecast suggests the industry will need 157,000 new workers over the next five years to meet demand — equivalent to the population of Hamilton. The shortage affects all levels, from entry-level trades to management and technical experts, with an ageing workforce intensifying the challenge.
Catherine Lye, Chief Executive of Advancing Manufacturing Aotearoa, says the Earn As You Learn model tackles long-standing barriers to recruitment and training. “Manufacturing is one of New Zealand’s most critical industries, yet it often flies under the radar for young people. This programme changes that perception by connecting education directly with employment and giving learners a clear pathway to a career.”
She says the most recent sector survey revealed that 88% of employers struggle to recruit high-skilled technical workers, 61% find it difficult to hire mid-level managers, and 51% face shortages in entry-level roles. More than 70% of manufacturers believe the domestic labour market alone cannot fill those gaps, underscoring the need for new thinking in vocational education.
How the Earn As You Learn Model Works
The pilot, developed in collaboration with Competenz, Wintec, and a consortium of Waikato manufacturers, offered a 30-week Level 3 certificate combining two days of classroom learning with three days of paid work per week. Learners rotated across multiple host companies, gaining hands-on experience in machining, fabrication, logistics, and production operations while earning an income and completing formal qualifications.
Howard Fountaine, General Manager of APL Manufacturing, says the results have exceeded expectations. “Of the ten students we hosted, we would have hired nine immediately if we had openings. They brought fresh enthusiasm, discipline, and curiosity to the workplace — qualities that have a ripple effect on our existing teams. Employers like us are already holding positions open for graduates of this programme.”
Fountaine says the low attrition rate — just one or two learners dropping out from a class of 21 — proves the value of linking training with real-world experience. “These students aren’t just sitting in classrooms. They’re seeing the impact of their work, building confidence, and forming relationships with employers who genuinely want to see them succeed.”
Expansion Plans and National Rollout
Following its success in Waikato, the Earn As You Learn initiative will be launched in Wellington in 2025, with further rollouts planned in Tauranga, Whangārei, and Christchurch by 2027. A national steering group has been established to maintain consistent delivery standards while tailoring training content to regional industry needs. The programme’s flexibility allows local businesses to shape what learners study — ensuring qualifications remain relevant to the jobs actually on offer.
Samantha McNaughton, Deputy Chief Executive of the Hanga-Aro-Rau Workforce Development Council, says the expansion marks a pivotal moment for the sector. “We need 157,000 people to enter manufacturing, engineering, and logistics within five years. That’s not just a workforce issue — it’s a national productivity issue. Without targeted initiatives like this, we risk losing competitiveness on the global stage.”
McNaughton says the Earn As You Learn structure blends academic and practical training in a way that motivates students and gives businesses access to ready-to-hire talent. “Learners gain a nationally recognised qualification while earning an income, building networks, and exploring different workplaces. Employers get to see candidates in action and invest in people who already understand their processes and culture. It’s a win-win for both sides.”
Collaboration Between Education and Industry
Advocates say the programme’s strength lies in its collaborative design. By involving employers in curriculum planning and integrating real work into every course, it bridges the traditional gap between theory and practice. The initiative also promotes regional participation, allowing smaller towns and provincial centres to retain young talent rather than losing them to larger cities.
The success story has captured national attention, with 1News and Stuff featuring the Earn As You Learn pilot as an example of how education and industry can work hand in hand to strengthen New Zealand’s economic foundations. Businesses across the country are now expressing interest in joining the next wave of placements.
According to one of the top PR agencies New Zealand businesses turn to for strategic storytelling, this kind of collaboration demonstrates the practical benefits of connecting industry insight with public communication. The visibility created by these stories helps attract both students and employers, reinforcing manufacturing’s role as a high-value, innovative career path.
Driving Sustainable Economic Growth
Supporters believe that initiatives like Earn As You Learn will help New Zealand compete with international economies investing heavily in vocational education. Similar “earn-while-you-learn” frameworks in countries such as Germany and Singapore have long been recognised for producing highly skilled, adaptable workforces capable of driving advanced manufacturing growth. The New Zealand model adds regional flexibility and stronger cultural integration, making it uniquely suited to local industries.
For more context on how workforce shortages are shaping the sector, see analysis from Stats NZ, which outlines ongoing recruitment pressures across key export industries.
About Impact PR
Impact PR is a leading communications consultancy representing clients across manufacturing, infrastructure, technology, and education. The agency specialises in helping organisations articulate their purpose, engage communities, and build lasting reputations through data-driven storytelling and credible media relationships. From national policy announcements to grassroots workforce campaigns, Impact PR’s team ensures that complex initiatives like Earn As You Learn reach the audiences that matter — from industry decision-makers to the next generation of skilled workers.
The next national intake for Earn As You Learn begins in November 2025, marking a new phase in New Zealand’s effort to futureproof its workforce and strengthen the industries that drive its export economy.