NZ releases new tertiary education strategy to boost economy

According to a joint statement by universities minister Dr Shane Reti and vocational education minister Penny Simmonds, the new strategy will focus on “delivering the skills, knowledge and opportunities” students need to build strong careers and support a more productive and competitive economy.

“This strategy puts employment outcomes, innovation and real results at the centre. It refocuses the system on developing the workforce and research capability New Zealand needs for the future,” Reti said.

“This strategy is about fixing the basics and building for the future, helping to create a more connected, future-ready tertiary sector.”

The new strategy comes as the Tertiary Education Commission makes the rare move of allowing several tertiary institutions to exceed their government-funded enrolment caps by up to five percent to meet rising student numbers.

Rising student numbers reflect a larger cohort of school-leavers enrolling in polytechnics and private institutions, while fewer apprenticeships — down about 15% annually for three years — have shifted more young people toward tertiary education, according to a Radio New Zealand report.

The strategy also reinforces the importance of foundation education and work experience for young people at risk of long-term poor employment outcomes
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The growth in the tertiary education sector has prompted the New Zealand government to focus on five priorities in its new strategy: achievement, economic impact and innovation, access and participation, integration and collaboration, and international education.

These aim to improve career outcomes, boost research and productivity, support people from all backgrounds in gaining relevant skills, strengthen partnerships, and grow the sector’s global engagement.

Moreover, Te Pūkenga, New Zealand’s largest vocational education provider formed of 16 Institutes of Technology and Polytechnics, is set to be replaced by a network of regional polytechnics by the end of March 2027, with Workforce Development Councils potentially replaced by Industry Skills Boards.

“The redesign ensures vocational education is more responsive to regional and industry needs – a key focus of the strategy,” stated Simmonds.

“The Strategy also reinforces the importance of foundation education and work experience for young people at risk of long-term poor employment outcomes. We cannot afford to leave them behind.”

Despite a continuing debate over whether New Zealand is in a recession, the economy has struggled to grow in recent quarters, with a record 72,600 citizens leaving the country in the 12 months to September 2025, mostly for Australia.

New Zealand’s unemployment rate has risen to a near nine-year high of 5.3%, as per data released by Statistics New Zealand.

The University of Auckland, one of the country’s largest research-led higher education institutions, has welcomed the new education strategy, noting that it aligns closely with the university’s longstanding strengths, including its “strong focus on economic impact and innovation”.

“Driving innovation and strengthening productivity are central to our mission. We see the TES as an opportunity to build on the impact we are already making,” stated University of Auckland’s vice-chancellor, Dawn Freshwater.

Freshwater highlighted the university’s entrepreneurship achievements, including Triple E’s Innovative and Entrepreneurial University of the Year and a number one ranking in Australasia for start-ups, while stressing continued support for the arts, humanities, and social sciences is vital to the strategy.

“Partnership is central to how we work. We collaborate with industry, government and communities to develop solutions to complex national challenges many of which are social,” stated Freshwater.

Strengthening these partnerships will ensure the tertiary system continues to deliver real benefits for New Zealand.”

With the Tertiary Education Strategy focusing on international student growth, the VC has welcomed it as New Zealand aims to raise enrolments to six figures by 2034 and double the sector’s value.

“As New Zealand’s largest international education provider, it is positive to see further support for this area,” Freshwater said.

“A vibrant international education sector enriches our campuses and strengthens New Zealand’s global connections,” she added.

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