A global report gives NZ tertiary education a pass – but hides another side of the story
New Zealand’s tertiary figures look healthy on paper. But they lean heavily on migrants’ qualifications, while fewer young people raised here go on to study.
The OECD's annual Education at a Glance report has rated New Zealand's tertiary education system favorably once again. However, a closer look reveals a more complex picture. About 44% of New Zealand adults aged 25-64 hold a tertiary qualification, which is nearly identical to the OECD average of 43%. Young graduates also enjoy a relatively low unemployment rate of just 3%, compared to the OECD average of 5%. Yet, these seemingly positive figures mask a deeper issue.
New Zealand's education system is heavily influenced by its large migrant population, which accounts for over a third of working-age adults. Many of these migrants have earned tertiary qualifications abroad, skewing the nation's average performance. If only New Zealand-born adults were considered, they would likely fall below the OECD average.
Furthermore, the number of young New Zealanders pursuing higher education has been declining. Between 2015 and 2025, the share of 18-24 year-olds in education dropped by about five percentage points to around 37%, while the OECD average remained steady or increased. Many young New Zealanders are opting to enter the workforce instead.
The trend is concerning, especially as unemployment has risen to 5.6%, with 20-24 year-olds experiencing a 12% unemployment rate – the highest since 2014. With the job market having improved, the reasons behind this shift become clearer. Young people may be more motivated to enter the workforce due to economic conditions.
While having a tertiary qualification generally pays off, the benefits vary depending on the type of degree. A bachelor's degree can lead to a 24% higher income compared to those with only secondary education, while postgraduate qualifications offer a 34% boost. However, lower-level certificates provide little additional income.
Moreover, tertiary-educated adults are twice as likely to engage in further learning, which will be crucial as technology, particularly artificial intelligence, reshapes the job market. However, government spending on tertiary education has been decreasing since 2015, falling from 1.7% of GDP to 1.2% in 2023. This reduction, coupled with fees from international students, has created an unstable funding foundation.
To address these challenges, it may be necessary to reconsider how funds are allocated. Simply reducing fees may not be enough, as student loans already allow people to study without upfront payment. Instead, efforts should focus on improving school achievement, particularly in lower-decile schools and for Māori and Pacific students.
Targeted support for living costs and qualifications with better earning potential should also be prioritized. Additionally, investing in data collection to monitor the progress of New Zealand-born young people would provide valuable insights for policy decisions. Ultimately, the future of New Zealand's education system depends on supporting the country's own young people, not just relying on skilled migrants.
Written by urgent.news from The Conversation AU's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
