Budget 2020 makes major investments jobs and training

“As we emerge from this health crisis it is important that we now invest in training and education for people who might have lost their jobs, or who want to move into a different sector where prospects are better,” Education Minister Chris Hipkins said.

Budget 2020 makes major investments jobs and training as we get New Zealand working again after the COVID-19 pandemic.

Trades and Apprenticeships Training Package

"As we emerge from this health crisis it is important that we now invest in training and education for people who might have lost their jobs, or who want to move into a different sector where prospects are better," Education Minister Chris Hipkins said.

"Our $1.6 billion Trades and Apprenticeships Training Package will provide opportunities for New Zealanders of all ages to receive trades training. It will continue to be added to as part of our ongoing work to rebuild the economy."

It includes:

$334m funding for additional tertiary education enrolments

$320m targeted investment support for free trades training in critical industries

$412m support for employers to retain and keep training their apprentices

$276m funding for Workforce Development Councils and Regional Skills Leadership groups, to be established to give industry and regions a greater voice and help them respond to COVID-19

$141m to support high-quality tertiary and trades education

$32m increased funding to meet demand in Trades Academies

$50m for a Māori Apprenticeships Fund

$19m for group training schemes to retain apprentices

$26m operating and capital for a new online careers advice system.

Education Minister Chris Hipkins said making targeted vocational training courses free – for all ages, not just school leavers – over the next two years will help people who have lost their jobs retrain and also allow new employees in some essential services to train on the job.

"It will include courses linked to industry skills needs, in building and construction, agriculture, and manufacturing, and also vocational courses like community health, counselling and care work. The fund will be available from 1 July 2020.

"The initiative to support employers and group training schemes to retain and keep training their apprentices is critical for continuity. The last thing we want to see is apprentices and trainees having to be let go when we need really them.

"We are also increasing the volume of Trades Academy places in secondary schools by 1,000 places a year from 2021. This will help with our recovery by building up our future skilled workforce," Chris Hipkins said.

Budget 2020 funds the establishment of Workforce Development Councils to strategically plan for the recovery of industries and jobs from the impact of COVID-19.

"Industry skills leadership will be vital in order to address the profound impact of COVID-19 on the labour market and education systems. The intention is to establish the councils in the second half of 2020 so that they can begin to provide the crucial industry leadership to support the COVID-19 recovery," Chris Hipkins said.

"The online careers system will be for learners and workers throughout their lifetime to plan and manage their careers. It will help all New Zealanders to understand their transferrable skills and will be particularly valuable for those who can't easily show clear work history."

Employment Minister Willie Jackson says the establishment of 15 Regional Skills Leadership Groups will also help respond to the labour market needs post-COVID-19

"These groups will provide a valuable source of on-the-ground, more timely intelligence about regional labour market disruption resulting from COVID-19.

"They will also highlight particular areas within the community that may need particular focus for recovery efforts, such as Māori, youth, Pacific peoples and women," Willie Jackson said.

(With Inputs from New Zealand Government Press Release)