A new report from Education New Zealand (ENZ) raises concerns about whether the country’s tertiary education spending, nearly 2% of GDP, is translating into workforce-ready skills.
Reviewing 170 studies, ENZ found gaps between higher education outputs and labour market needs. Total funding ranges from NZ$6 billion to NZ$7 billion annually, with students covering around NZ$25,000 per bachelor’s degree, while government invests two to three times that amount.
Around one-third of school leavers go to university, and three-quarters of them complete their degrees.
The report said only 70% of graduates are in employment within a year of finishing. It also noted: “the overall benefit to students of attending university is much smaller in New Zealand than it is in many other OECD countries.”
ENZ said there was “a mismatch” between what students study and the skills employers need.
It also pointed to missing information about migration, saying: “we know New Zealand graduates are more likely to head overseas than is typical in other OECD countries,” but there remains “a big gap” in data on where they go, what skills immigrants bring, and who returns.
The report acknowledged some wider gains, citing “higher levels of various positive social outcomes—including better health, higher levels of social connection and cohesion, trust and civic engagement.”
ENZ said “the value of social benefits from tertiary education is not fully known,” and called for more research on how education contributes to productivity and growth.