‘Earn As You Learn’ scheme expands to tackle skills crisis
A nationwide rollout of a government and industry training and remuneration initiative is set to take place after a pilot scheme in Waikato recorded a learner completion rate exceeding 90%.
The initiative, termed 'Earn As You Learn', will be expanded to regions including Wellington, Tauranga, Whangarei, and Christchurch, aiming to address New Zealand's acute manufacturing skills gap. Manufacturing, engineering, and logistics sectors are projected to face a shortfall of 157,000 workers within the next five years due to a combination of workforce ageing and increased demand.
According to figures from industry bodies, there are currently 23,000 manufacturers nationwide, employing 250,000 people. These sectors collectively contribute 10% of New Zealand's Gross Domestic Product and underpin 60% of the country's exports.
Workforce shortage
Catherine Lye, Chief Executive of Advancing Manufacturing Aotearoa, commented on the distinct challenges facing the sector and highlighted the potential impact of the programme.
"Manufacturing is one of New Zealand's most important industries, yet too often it is invisible to young people when they are considering careers. This model works because it is industry-led with best-in-class employers stepping up to create solutions in partnership with education."
Lye referenced survey data showing that 88% of employers report shortages of high-skilled technical workers, 61% struggle to find mid-level managers, and 51% face scarcity in lower-skilled roles. More than 70% of manufacturers do not believe the domestic labour market alone can close these gaps.
Pilot outcomes
The Waikato pilot was run in collaboration with local manufacturers, Competenz, and Wintec. Participants took part in a 30-week Level 3 certificate programme, which involved two days of on-campus study and three days of paid, hands-on work each week. Rotations across businesses were included, allowing learners to gain insight into different operational environments. Employers benefited from a pool of motivated, work-ready candidates.
Howard Fountaine, General Manager of APL Manufacturing, described the positive outcomes observed during the pilot.
"Of the ten students we hosted, we would have hired nine on the spot if positions were available. They were motivated, engaged, and brought real energy into the business. Learners' enthusiasm has also been matched by staying power, with only one or two of the 21 students dropping out. That low attrition rate shows how committed these young people are, and employers like us have even held jobs open in anticipation of hiring them when they graduate. This programme has been a game-changer for how we recruit."
National expansion
Following the pilot's rate of success, the programme will roll out to Wellington and has plans in place for Tauranga, Whangarei, and Christchurch between 2026 and 2027. A national steering group will oversee the scale-up and delivery.
Samantha McNaughton, Deputy Chief Executive of Hanga-Aro-Rau Workforce Development Council, discussed the foundational elements that have supported the pilot and will underpin national expansion.
"We need 157,000 people to enter manufacturing, engineering, and logistics over the next five years, and without targeted initiatives like this the gap will only grow. This is not just about filling jobs, it is about securing the backbone of our export economy and ensuring New Zealand remains competitive globally.
Every region has different workforce needs, but the model is flexible enough to deliver results wherever it is rolled out. Industry has been clear about the skills they need and education has listened.
Learners not only gain a recognised qualification, but also experience the breadth of modern manufacturing environments while being paid. That exposure gives them a real understanding of the opportunities available, while employers can see how learners perform in practice, creating clear pathways into long-term employment.
This partnership is exactly how we should be tackling the skills challenge."
The next national intake of learners is scheduled to begin in November 2025.
