More young people with higher qualifications

Key facts - NZQF Level 4 or above

• In 2012 the Government set a target that 55% of 25-34 year-olds would hold a qualification of Level 4 or above in 2017. In 2014, the Government updated the target to be 60% of 25-34-year-olds in 2018. The target was revised as it was expected that the 55% target would be met before 2017, given recent trends in the measure and for other positive trends in tertiary completion rates.
• The annual average to June 2016 was that 56.5% of 25-34 year olds held a qualification at Level 4 or above. This was up from 55.8% for the year to March 2016, and 53.5% for the year to June 2015. The annual average to June 2016 is the highest result reported to date, and is the second quarter in a row that the result has exceeded 55%.

What are we doing to help achieve this result?

To achieve this target, it is necessary to identify opportunities for increasing enrolments within the tertiary sector, continue to improve quality provision, completion rates, and the tertiary system performance. This will draw together a range of existing work by the Ministry of Education, the Tertiary Education Commission and the wider tertiary sector, and will require ongoing collaboration.
There is a strong focus on improving the overall quality of higher level tertiary education and increasing achievement at Level 4 or higher through tertiary provision at providers and through industry training. There has been an increase in overall course and qualification completion rates in provider-based study, and in credit completion rates for industry training.

We are improving pathways for progression to higher level study by:

• Extending Vocational Pathways – developed with industry to show students how their learning relates to career options – to Level 3 and above. This will help students transition and navigate higher level study that relates to the six sectors of the economy.
• Additional New Zealand Apprentices – funding for an additional 5,500 apprentices by 2020 was announced in Budget 2016. Greater demand for apprentices has been driven by a strengthening labour market and improvements in school achievement. 
• Supporting schools, tertiary providers and industry training organisations to collaborate so that senior secondary school students can enrol part-time in school and part-time in tertiary education or industry training. This allows students to explore career options and get a head start on a vocational qualification, alongside completion of NCEA Level 2 or 3. From 2017, the Dual Pathways pilot will provide additional funding to support these programmes.
• Expanding fees-free foundation education to students of all ages from 2017. From 2013, fees-free foundation education provision has been expanding, and was available to learners under 25 years from 2014. Basic foundation skills provide options for people to go on to further study or training, including towards qualifications at Level 4 or higher, and have better employment outcomes. 
• Extending the Māori and Pasifika Trades Training (MPTT) initiative from 1,200 allocated places in 2015 to 2,400 places in 2016, with further growth planned in 2017. MPTT gives more Māori and Pasifika young people the opportunity to complete foundation and pre-apprenticeship education so that they may move into employment and further training through New Zealand Apprenticeships.
• Increasing funding for, and promotion of, engineering to support 500 additional graduates per year from 2017. Between 2008 and 2014, the number of domestic students enrolled in engineering and related technologies at bachelors or higher level of study increased by 38 per cent to 11,055. The number of bachelors or higher engineering and related technology graduates increased by 480 (31 per cent) over the same period. 

We are also supporting students to make more informed study and career decisions by providing accessible information on study options and careers. This information includes:

• the Ministry of Business, Innovation and Employment's Occupation Outlook report and Smartphone app showing the career prospects for 50 occupations from the six Vocational Pathways
• online tools that enable students to compare the study options and careers by showing comparative information on the employment outcomes of tertiary study
• developing more information on whether qualifications fulfil labour market needs from the perspectives of graduates and employers through Rate My Qualification
• The new FindMyPath tool highlights the Level 3 to 7 qualifications that are valued by different industries. It shows young people how to pursue particular pathways and where those pathways can take them. It builds on the Vocational Pathways profile builder, which helps students doing NCEA see what learning to pursue so their school achievement is valued in the world of work.
• Proposing to transfer Careers New Zealand’s functions into the TEC. This would make use of the TEC’s ability to work with tertiary providers and employers so they can provide better careers information to schools, and coordinate with schools and employers on the skill needs of the labour market. Improving connections between educators and employers will support students to successfully transition to further study and employment.

For more information, go to:
Vocational Pathways , linking study options to careers
Occupational Outlook , a report and smartphone app which provides future employment prospects for 50 occupations
The Careers NZ website's interactive tools , providing information on employment and earnings outcomes by qualification and field of study.

Read about these related case studies

• Construction company praises New Zealand Apprenticeships
• Carpentry apprentice and employer benefit from apprenticeship reboot
• Expansion of AUT South Campus
• Pasifika Trade Training
• Occupation Outlook App
• Case study: Mentoring Pasifika Engineering Students – UNITEC
• Finding the path to success 
• Learning on the job at WelTec’s Trades Academy