Simmonds did stand by it:
“Yes, it is absolutely important that as many apprentices as possible are completing the numbers of their apprenticeships”.
But whoa. In response to a follow-up question from Labour’s Shanan Halbert, Simmonds acknowledged that the numbers of completed apprenticeships had decreased since 2023.
She was coy about post-2023 numbers.
Hon PENNY SIMMONDS: Yes, what has occurred is that there had been a very large intake of apprentices over the 2021-22 period,.when Apprenticeship Boost was in full swing. During that time, many of those additional learners withdrew, and we saw a significant decline in credit achievements during that time, going down from 85 percent credit achievements in 2019 to 77 percent in 2020, to 67 percent in 2021, and to 69 percent in 2022. Those large numbers brought about reductions in the completion-of-credit rates, and that is, of course, flowing through.
Halbert then asked if it was correct that Government cuts to the vocational education sector had made apprenticeship completion rates worse.
Simmonds was not agreeing to that proposition.
Hon PENNY SIMMONDS: What has impacted on the apprenticeship completion rate—recognising that most apprentices take around three to five years. What is showing the impact is the additional numbers taken in that did not complete sufficient credits and many of whom withdrew.
Halbert’s next question was pitched at ascertaining what advice, if any, Simmonds had received on the increased number of young people not engaged in education, employment, or training since 2023.
Simmonds said there had been advice on the increase in “NEETs” — people under 25 not in employment, education, or training.
“That is why we are so focused on ensuring that we have additional youth guarantee places which pick up on young people under 25 who have had low prior achievement. It is why we are focused on ensuring that foundation education is available and accessible to those young people.”
The next question was a particularly teasing one:
Shanan Halbert: How does more young people not in education, employment, or training, fewer enrolments in apprenticeships, and fewer apprenticeship completions contribute to ensuring that New Zealand has the workforce it needs?
Simmonds circumvented it, saying:
“ We are very focused on ensuring that our young people have access to further training so that they are well prepared to be able to go into employment. There is no doubt that the current financial situation, which we inherited from the previous Government, left us in a situation where we were having to battle high inflation and high interest rates, which has resulted in higher unemployment than any of us would like, but it is equally important that we have sufficient education and training available to ensure those young people are well skilled and well able to enter the workforce as the economy improves.”
Tony Lafotanoa, a Workforce Development and Vocations Advocacy Industry Engagement Manager, has provided further figures in an article published late last month:
New Zealand stands at a crucial turning point in how it trains its future workforce. After a decade of growth in apprenticeships—surging from about 55,500 in 2018 to 77,500 in 2023—the momentum is faltering. A softening economy, scaling back of government subsidies, and aggressive recruitment by Australia risk hollowing out the very skills base we need most.
Lafotanoa said data from the Ministry of Education and industry analysis which showed apprenticeships in building, electrical, and automotive trades led the charge during the COVID-era peak.
But as the Apprenticeship Boost subsidy was cut back in 2025 (from 24 months to just 12), the rate of commencements slowed.
Employers in construction—already hit by a downturn—were shedding apprentices, with young people struggling to find placements, Lafotanoa wrote..
At the same time, youth not in employment, education, or training (NEET) remain stubbornly high. Stats NZ’s June-quarter 2025 release confirms that more than one in ten young New Zealanders risk falling through the cracks, just when the economy needs them skilled and engaged.
There were thousands of young New Zealanders behind those numbers, Lafotanoa noted.
Some, midway through their apprenticeships, are being let go by employers short of work. Others, leaving school, find fewer firms willing to take them on. The risk?
The Australian Apprentice Training Support Payment provides up to A$5,000 over two years, while Support Loans help cover tools and living costs—complete with a 20% completion discount and new rules cutting balances by a further 20% in 2025. Employers are incentivized too, through Priority Hiring Incentives.
The result: more young New Zealanders are packing their bags. Stats NZ reports a net migration loss of over 46,000 citizens in the year to June 2025, with 18–30-year-olds heavily represented.
Lafotanoa had some advice for Simmonds, if she wants New Zeeland to retain its youth and rebuild its workforce.
But whoa. In response to a follow-up question from Labour’s Shanan Halbert, Simmonds acknowledged that the numbers of completed apprenticeships had decreased since 2023.
She was coy about post-2023 numbers.
Hon PENNY SIMMONDS: Yes, what has occurred is that there had been a very large intake of apprentices over the 2021-22 period,.when Apprenticeship Boost was in full swing. During that time, many of those additional learners withdrew, and we saw a significant decline in credit achievements during that time, going down from 85 percent credit achievements in 2019 to 77 percent in 2020, to 67 percent in 2021, and to 69 percent in 2022. Those large numbers brought about reductions in the completion-of-credit rates, and that is, of course, flowing through.
Halbert then asked if it was correct that Government cuts to the vocational education sector had made apprenticeship completion rates worse.
Simmonds was not agreeing to that proposition.
Hon PENNY SIMMONDS: What has impacted on the apprenticeship completion rate—recognising that most apprentices take around three to five years. What is showing the impact is the additional numbers taken in that did not complete sufficient credits and many of whom withdrew.
Halbert’s next question was pitched at ascertaining what advice, if any, Simmonds had received on the increased number of young people not engaged in education, employment, or training since 2023.
Simmonds said there had been advice on the increase in “NEETs” — people under 25 not in employment, education, or training.
“That is why we are so focused on ensuring that we have additional youth guarantee places which pick up on young people under 25 who have had low prior achievement. It is why we are focused on ensuring that foundation education is available and accessible to those young people.”
The next question was a particularly teasing one:
Shanan Halbert: How does more young people not in education, employment, or training, fewer enrolments in apprenticeships, and fewer apprenticeship completions contribute to ensuring that New Zealand has the workforce it needs?
Simmonds circumvented it, saying:
“ We are very focused on ensuring that our young people have access to further training so that they are well prepared to be able to go into employment. There is no doubt that the current financial situation, which we inherited from the previous Government, left us in a situation where we were having to battle high inflation and high interest rates, which has resulted in higher unemployment than any of us would like, but it is equally important that we have sufficient education and training available to ensure those young people are well skilled and well able to enter the workforce as the economy improves.”
Tony Lafotanoa, a Workforce Development and Vocations Advocacy Industry Engagement Manager, has provided further figures in an article published late last month:
New Zealand stands at a crucial turning point in how it trains its future workforce. After a decade of growth in apprenticeships—surging from about 55,500 in 2018 to 77,500 in 2023—the momentum is faltering. A softening economy, scaling back of government subsidies, and aggressive recruitment by Australia risk hollowing out the very skills base we need most.
Lafotanoa said data from the Ministry of Education and industry analysis which showed apprenticeships in building, electrical, and automotive trades led the charge during the COVID-era peak.
But as the Apprenticeship Boost subsidy was cut back in 2025 (from 24 months to just 12), the rate of commencements slowed.
Employers in construction—already hit by a downturn—were shedding apprentices, with young people struggling to find placements, Lafotanoa wrote..
At the same time, youth not in employment, education, or training (NEET) remain stubbornly high. Stats NZ’s June-quarter 2025 release confirms that more than one in ten young New Zealanders risk falling through the cracks, just when the economy needs them skilled and engaged.
There were thousands of young New Zealanders behind those numbers, Lafotanoa noted.
Some, midway through their apprenticeships, are being let go by employers short of work. Others, leaving school, find fewer firms willing to take them on. The risk?
- Housing delays as fewer builders and sparkies enter the pipeline.
- Skills shortages across essential trades.
- A long-term wage and productivity gap, as disengaged youth carry lower lifetime earnings.
The Australian Apprentice Training Support Payment provides up to A$5,000 over two years, while Support Loans help cover tools and living costs—complete with a 20% completion discount and new rules cutting balances by a further 20% in 2025. Employers are incentivized too, through Priority Hiring Incentives.
The result: more young New Zealanders are packing their bags. Stats NZ reports a net migration loss of over 46,000 citizens in the year to June 2025, with 18–30-year-olds heavily represented.
Lafotanoa had some advice for Simmonds, if she wants New Zeeland to retain its youth and rebuild its workforce.
- Government must restore multi-year support. Apprenticeship subsidies should be counter-cyclical, not pro-cyclical, cushioning employers through downturns.
- Businesses must share the risk. Group training and completion guarantees can keep apprentices employed even when workloads dip.
- Providers must innovate. Flexible training delivery, wrap-around supports, and recognition of prior learning can boost both uptake and completion.
Bob Edlin is a veteran journalist and editor for the Point of Order blog HERE. - where this article was sourced.
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