NZ expands Earn as You Learn pilot to grow manufacturing talent nationwide by 2027

Small Business and Manufacturing Minister Chris Penk says the early achievements of the Earn as You Learn initiative show the powerful impact that real workplace experience can have on young people.

A successful pilot programme designed to connect high school students with New Zealand’s manufacturers and build a stronger future workforce is set for nationwide expansion after delivering standout results in its first year.

Small Business and Manufacturing Minister Chris Penk says the early achievements of the Earn as You Learn initiative show the powerful impact that real workplace experience can have on young people.

“We know that meaningful, well-paid employment is one of the most powerful ways to change a person’s life and open doors to future opportunities,” Penk said, highlighting the programme’s potential to shift long-term career trajectories for students.

Launched in Waikato in February, Earn as You Learn is a government-backed, industry-led partnership that gives senior secondary school students paid, practical experience with advanced manufacturers while they complete formal study. The pilot aims to bridge the longstanding gap between classroom learning and hands-on technical skills—an issue repeatedly identified by industry leaders.

Under the Waikato model, students spend two days per week in the classroom at Wintec’s Rotokauri Campus and three days in the workplace, earning the NZ Certificate in Manufacturing (Level 3). This blended training approach has been praised for giving learners immediate exposure to modern manufacturing environments, including automation, precision engineering and digital production systems.

The pilot’s outcomes have exceeded expectations, delivering learner completion rates above 80 percent—well above typical vocational training benchmarks. Many graduates have already been hired by the same companies that hosted them during the programme, strengthening local employment pipelines and reducing recruitment costs for participating firms.

In a further sign of success, eight out of ten employers involved in the pilot have confirmed they will continue next year, and more businesses are already in discussions to come on board.

Given the strong demand from industry, the Government has confirmed that Earn as You Learn will expand to the Hutt Valley and Canterbury in 2026, followed by a wider rollout to Auckland in 2027. Regional steering groups are leading this expansion, with an ambitious goal of increasing annual graduate numbers from 17 in 2024 to between 100 and 150 by 2027.

The need for a skilled manufacturing workforce is pressing. Manufacturing currently contributes 8 percent to New Zealand’s GDP and underpins 60 percent of the country’s export economy. However, the sector continues to face chronic skills shortages, driven by technological change, an ageing workforce and global competition for talent.

Penk says the programme demonstrates how collaboration between industry, vocational educators and government can create lasting solutions to workforce challenges.

“I want to acknowledge the outstanding efforts of Advancing Manufacturing Aotearoa, Hanga-Aro-Rau, Wintec, and the Waikato Engineering Careers Association, along with the businesses who hosted students throughout the pilot,” he said. “This is a powerful example of what industries can achieve when they work together to build a pipeline of talented workers.”

With expansion now underway, Earn as You Learn is poised to become a cornerstone of New Zealand’s strategy to develop a highly skilled manufacturing workforce capable of competing in an increasingly tech-driven global market.

“Waikato is just the beginning,” Penk said. “Our task now is to take this proven model nationwide and ensure New Zealand has the skilled manufacturing workforce it needs for the future.”