Trade training gets boost
New programme to answer business’ call for workers
The Government is investing $230 million in trades training programmes it says will support 38,000 into work. Education Minister Chris Hipkins and Social Development and Employment Minister Carmel Sepuloni made the pre-budget announcement yesterday, saying it wold help the postcovid recovery.
Hipkins said the 3.2 per cent unemployment and economic activity were among the strongest in the world, thanks in part to investments in training programmes such as Apprenticeship Boost — a payment to employers taking on new apprentices.
Apprenticeship Boost started in August 2020. Hipkins said it had helped increase the number of apprentices since the start of the pandemic by 55 per cent.
“We’re also succeeding at getting more women into the trades.”
Now businesses were calling for more skilled workers, he said.
A $230 million investment as part of Budget 2022 would support another 24,000 apprentices getting Apprenticeship Boost support and 14,000 to keep being supported beyond August this year, he said.
There are already 17,000 employers involved in the programme and today’s investment means new employers can join up, he said.
Under the scheme the first-year subsidy rate will lower from $1000 to $500 a month from August 5. The second-year subsidy rate will remain at $500 a month until the initiative ends in December 2023.
Hipkins said more work was to be done with apprenticeships, but good
The training programme is beginning to bear fruit and today’s announcement provides certainty. Carmel Sepuloni
progress had been made.
He congratulated new apprentices and thanked employers for taking on new apprentices.
Hipkins said the building and construction sectors had suffered major skill shortages.
He said the Government was confident a strong number of new apprentices could be sustained.
“Never say never,” Hipkins said when asked if the scheme might extend beyond 2023.
Included in yesterday’s announcement was more support for Mana in Mahi and Ma¯ori Trades Training, which has assisted over 4719 young people into work and training, Sepuloni said.
Budget 2022 would see funding for 1600 places on the scheme over the next two years so that it can continue to train people for available employment opportunities.
Funding is also being extended for Ma¯ori Trades Training and the Ministry of Social Development has established partnerships with 17 Ma¯ori entities delivering unique multi-year work-focused training, she said.
“The training programme is beginning to bear fruit and today’s announcement provides certainty to our providers and the rangitahi who are benefiting from the scheme.
“New Zealand is seeing a huge boom in construction and building and we have plenty of people willing and ready to take up the opportunities it provides. However, many lack the foundational skills to realise their potential.”
Deputy Prime Minister Grant Robertson fronted yesterday’s postcabinet press conference with Prime Minister Jacinda Ardern isolating after her partner Clarke Gayford tested positive for Covid-19.
Robertson said New Zealand had a very strong economy, with low unemployment, and boosting apprenticeships was important for economic development.
The announcements were about ensuring youth could upskill, he said.
Ardern was isolating rather than using the exemption scheme for critical workers.