“Are We Teaching Our Kids To Fail?”

By Samara Winslade
Guest Contributor, Maxim Institute

New Zealand’s youth unemployment rate hit 13.5% at the end of 2024—a number that should raise alarm bells, especially when compared to Germany’s 6.4%. While some level of uncertainty is normal as teenagers leave school, too many young Kiwis are finding themselves unprepared, unsure, and struggling to find jobs.

This isn’t just an economic issue—it’s a symptom of an education system that isn’t equipping students with the skills or direction they need. Schools often emphasise university pathways at the expense of vocational training. Career advisors have pointed out that the system largely caters to the 30% of students who go to university, leaving those interested in trades with limited guidance. Many students aren’t aware they can step into an apprenticeship straight out of school and (by avoiding student debt and earning earlier) end up in a stronger financial position than many of their university-educated peers.

The demand for skilled workers is growing. According to the EMA Skills Shortage Survey 2023, 90% of businesses struggled to fill vacancies, and 71% said highly skilled roles were the hardest to fill. The construction industry in particular is facing a significant worker shortage. This issue is compounded by the fact that 12.8% of New Zealanders aged 15 to 24 were not in employment, education, or training (NEET) in the year to December 2024. This mismatch between available talent and market needs is costing both young people and the wider economy.

How do we fix this? Well, Germany, with its highly successful dual education model, has long been an example of how to integrate education and employment. Students there split their time between classroom learning and hands-on apprenticeships, ensuring they graduate with both theoretical knowledge and practical experience. It’s a system that directly contributes to Germany’s lower youth unemployment rate. If New Zealand adapted key elements of the German model, we could see real benefits—particularly by creating better-integrated pathways from school to work.

There are calls for change. A recent report from The New Zealand Initiative argues for a trades entrance qualification that has equivalent standing to university entrance. This would open doors for thousands of students to pursue trades and apprenticeships with the same level of support and recognition as university degrees. Such a shift isn’t just necessary—it’s long overdue. Schools should be guiding students toward viable careers that match their skills and ambitions, whether that means university, an apprenticeship, or other training programmes.

We also need stronger links between schools and industries, real-world experience before graduation, and vocational training given equal prestige to university degrees. All of the above would dramatically improve outcomes for young people. Businesses would gain skilled workers, communities would benefit from job-ready youth, and the economy would grow through fewer skill gaps and lower unemployment costs.

At the end of the day, it’s not about funnelling students into one "right" future—it’s about making sure they leave school knowing there’s more than one.

(Maxim Institute is an independent think tank working to promote the dignity of every person in New Zealand by standing for freedom, justice, compassion, and hope.)

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