New Zealand must overhaul digital tech education system
A significant overhaul is needed in the coordination, funding, and provision of vocational education in New Zealand to harness the potential of the country’s burgeoning digital technology industry. This is among the key findings of the first workforce development plan (WDP) for the sector, released by Toi Mai Workforce Development Council.
The WDP, titled Te Wao Toi Whānui, emerged from extensive research and consultations with over a hundred learners, workers, education providers, and businesses. The digital technology sector is anticipated to surpass the primary sector as New Zealand’s leading export industry. According to Infometrics, an additional 20,000 workers with advanced technology training will be required by 2030 to support this growth.
Despite being a highly remunerated, innovative, and sustainable industry, investment from the government in digital technologies training witnessed a decline of NZD $22 million (40%) between 2012 and 2022. This reduction in provision predominantly affected areas outside central Auckland and other regions. Moreover, the current educational system fails to meet industry demands for increased work-based training, internships, and digital apprenticeships.
Dr Claire Robinson, CEO of Toi Mai, remarked, "The education system urgently needs to develop and fund new work-based models of technology education. These delivery methods will also benefit the Māori and Pacific workforce who desire the ability to earn while they learn." Robinson criticised well-meaning government agencies that invest in short-term initiatives and pilot programmes, citing a lack of strategic coordination across sectors and no tangible improvement in the number of domestically trained technology workers.
Robinson highlighted the need for a coordinated, long-term, and concerted effort by both industry and government to cultivate a thriving industry, beginning with how technology education is administered and funded. The WDP underscores the necessity of greater investment in Pacific and Māori-led training initiatives, as well as the importance of transferable skills. Presently, Māori represent 5% and Pacific peoples 1.77% of the digital technology workforce, per Stats NZ, missing out on lucrative job opportunities in the sector.
Toi Mai Poumatua Tama Kirikiri emphasised the urgency of training approximately 60,000 Māori in digital technology post-high school to achieve workforce parity by 2040. Kirikiri also called for a heightened focus on vocational training at Levels 1-3 to enable more access for Māori and Pacific peoples to bridge the gap into higher tiers of digital technology education.
As part of this strategy, Toi Mai plans to review all its qualifications and develop new work-based models in collaboration with industry leaders and educational providers, supplementing the conventional classroom-based training currently offered.
Key statistics from the workforce development plan reveal that 46,300 people with advanced technology skills work among over 120,000 individuals in the broader technology sector. The average salary in the digital technology sector stands at NZD $106,400, which is NZD $50,000 higher than the average New Zealand salary. The sector, valued at NZD $20 billion, was the second-largest exporter in New Zealand in 2022, contributing 8% to the country's GDP. However, it remains heavily reliant on international talent, with 45% of its employees holding visas, and has significant diversity gaps, with only 29% female, 5.01% Māori, and 1.77% Pacific representation.
