Tech New Zealand urges action on digital skills gap
Mon, 10th Aug 2026 (Today)
Tech New Zealand has called for urgent national action to strengthen New Zealand's digital skills pipeline, warning in a new report that the shortage of advanced digital talent has become a structural problem.
Demand for skills in artificial intelligence, cyber security, cloud infrastructure and software development continues to rise, while the domestic supply of qualified workers is under increasing strain. The report points to weaker participation in school subjects linked to digital careers, limited entry-level job opportunities and a sharp fall in ICT migration.
Technology remains one of New Zealand's largest growth sectors. The industry includes more than 24,000 firms and contributes about $24 billion, or roughly 8% of gross domestic product. The top 200 technology exporters generated almost $18 billion in revenue in 2024 and have expanded by about 8% a year over the past five years, far ahead of the wider economy.
Graeme Muller, Chief Executive Officer of Tech New Zealand, said that growth could not be assumed without stronger investment in the workforce behind it.
"Technology is one of New Zealand's clearest pathways to higher productivity, export growth and global competitiveness. But we cannot take that growth for granted," Muller said.
Demand for advanced digital skills remains strong, particularly in AI, cybersecurity, cloud infrastructure and software development, he said. At the same time, the foundations of the future workforce are under pressure, with fewer students taking the science, technology and maths subjects that underpin digital careers and too many graduates struggling to get the early work experience they need.
The report places digital capability in a broader economic context, arguing that the issue extends beyond specialist technology companies. According to the 2023 Census, 132,336 people were employed in ICT professions across New Zealand, while more than half of surveyed organisations expect digital recruitment to increase over the next year.
Weakening pipeline
The flow of future workers also appears to be narrowing. Participation in NCEA technology subjects fell by about 2% a year between 2015 and 2024. Over the same period, the share of students taking science, technology and maths subjects declined from the high-80% range to below 75%.
International hiring has also become less significant, with only 729 visas approved for ICT jobs in 2024, down 67% on the previous year.
"This is no longer just a leaky pipeline. It is a structural challenge," Muller said.
New Zealand needs stronger foundations, clearer pathways and better coordination between industry, government and education, he said. In the age of AI, the countries that thrive will be those that can build, secure, govern and apply digital systems themselves. "We should be aiming to create technology, not simply consume it."
One of the report's central arguments is that artificial intelligence may deepen, rather than ease, the need for specialist knowledge. While AI tools can help users complete some tasks faster, they can also introduce more complex code, technical debt and security risks if used without proper oversight.
That makes experienced engineers, architects and cyber specialists more important, as they are needed to validate outputs, manage risk and oversee AI systems.
"AI does not remove the need for advanced digital skills. It makes them even more important," Muller said.
New Zealand needs people who understand the technology deeply enough to use it safely, productively and responsibly, he said, from software engineers and AI specialists to cybersecurity experts, cloud professionals, systems architects and leaders who can govern data, risk and ethics.
Experience gap
The report also identifies a gap between education and employment. Domestic IT degree enrolments are rising and female participation in IT degree-level qualifications is improving. Employers also appear open to more structured work-based pathways, with 82% of surveyed organisations supporting qualifications that include work-integrated learning, work-based learning or digital apprenticeships, and 91% agreeing that internships should be paid.
Even so, opportunities remain scarce. In 2024, Summer of Tech facilitated 132 internship placements, while about seven times that number of students applied.
"We are at risk of creating an experience chasm. Employers need experienced talent, but graduates need opportunities to become experienced. Paid internships, digital apprenticeships and stronger work-integrated learning models can help bridge that gap," Muller said.
The report proposes stronger digital engagement through primary and secondary education, better teacher training and resources, new digital apprenticeships, an IT degree apprenticeship, and a lifelong learning policy backed by an annual grant for regular upskilling. It also calls for digital fluency and IT degree apprenticeships to be included in funded apprenticeship support schemes, and for a coalition of large digital employers to help shape courses and offer placements.
Another theme is digital inclusion. Tech New Zealand argues that access to digital tools and confidence in using them should be treated as economic infrastructure as much as a social issue, because early exposure influences whether young people see science, technology and digital careers as realistic options.
"Digital inclusion is the starting point for the advanced digital skills pipeline. If young people do not build confidence with digital tools early, they are less likely to see science, technology and digital careers as accessible. That matters for productivity, equity and New Zealand's ability to build a resilient, homegrown workforce," Muller said.
"The opportunity is significant. New Zealand has a fast-growing tech sector, strong exporters and increasing demand for digital capability across every part of the economy.
"But we need to act deliberately. Growing advanced digital skills is not simply about filling technology jobs. It is about lifting productivity, supporting innovation, strengthening national resilience and ensuring New Zealanders can help shape the digital future," he said.