New Tertiary Education Strategy to Boost New Zealand’s Global Competitiveness

A key theme of the Strategy is preparing New Zealand’s future workforce to succeed in rapidly changing industries influenced by automation, artificial intelligence, and global competition.

The New Zealand Government has announced a new Tertiary Education Strategy aimed at ensuring universities, polytechnics, and training providers deliver the skills, innovation, and career readiness needed for a stronger and more competitive economy.

Universities Minister Dr Shane Reti and Vocational Education Minister Penny Simmonds say the updated Strategy places clearer expectations on tertiary providers to improve employment outcomes, strengthen research impact, and ensure students receive training connected to real industry demand.

Dr Reti emphasised the need for a more results-driven model.

“The previous strategy did not prioritise employment pathways or the development of critical workforce capabilities,” he said. “This Government is shifting the focus toward measurable results—ensuring that education leads to careers, productivity, and innovation.”

A key theme of the Strategy is preparing New Zealand’s future workforce to succeed in rapidly changing industries influenced by automation, artificial intelligence, and global competition. The Strategy introduces five priorities designed to guide future funding and performance expectations across the sector:

• Achievement: Strengthening foundational and specialist skills to help learners secure long-term, meaningful careers.

• Economic Impact and Innovation: Encouraging industry-aligned research, technology adoption, and greater commercialisation of research discoveries.

• Access and Participation: Ensuring New Zealanders of all ages and backgrounds are supported to upskill or retrain throughout their lives.

• Integration and Collaboration: Building stronger partnerships between tertiary providers, employers, iwi, community organisations, and economic sectors.

• International Education: Reviving New Zealand’s global education position and increasing international student enrolments following post-pandemic declines.

Dr Reti said the Strategy works alongside recent reforms to universities and the science and innovation system, ensuring that education aligns with national priorities and workforce needs—particularly in high-demand fields such as health, engineering, construction, and technology.

Vocational Education Minister Penny Simmonds said changes underway in the vocational sector will make training more relevant, responsive, and regionally focused. As part of the reforms, Te Pūkenga will be replaced with individual regional polytechnics, while Workforce Development Councils will transition into Industry Skills Boards to better respond to employer needs.

Simmonds also highlighted the Strategy’s commitment to supporting young people at risk of long-term unemployment and ensuring training pathways that include industry placements and real-world experience.

“We cannot afford to leave people behind,” she said. “Strong education leads to strong communities. This Strategy will help more New Zealanders gain the skills they need for independence, growth, and prosperity.”

The Government says implementation will begin immediately, with further detail to be released on performance targets, funding expectations, and sector accountability measures.