Retail, employer groups welcome Budget 2026's trades training expansion
Retail and employer groups have welcomed Budget 2026's expansion of trades training for secondary school students, saying the measures could help lift employment by drawing more young people into skilled work and creating jobs in the regions.
Retail NZ said the government's decision to boost trades training opportunities for secondary students offered a route for NEETs – those not in employment, education or training – to become more active participants in the economy.
The organisation also welcomed the job-creating potential of the Budget's infrastructure spending and its focus on transport projects that move goods around the country.
"The infrastructure package the Government has announced today also will create jobs in those particular regions, and it's great to see a focus on transport resilience projects – including the next stage of the Waikato Expressway and rail network upgrades – to ensure efficient movement of goods around Aotearoa," Retail NZ CEO Carolyn Young said in a statement.
Young said retailers were also feeling the strain of weak consumer confidence and high freight costs, and had hoped the government would do more to encourage people to spend in their local communities.
Despite this, the group said it was encouraged that some of the announcements could have a positive effect on the unemployment rate.
New Zealand's Budget 2026
Budget 2026 invests around $2.1 billion in education, with Education Minister Erica Stanford shifting the focus towards secondary achievement and vocational pathways.
The Budget commits $69 million to nearly double the number of Trades Academy places to 20,000 by 2030, $15 million for new Industry Skills Boards to develop at least eight industry-led secondary subjects, and $90 million for the New Zealand Qualifications Authority (NZQA) to modernise its systems.
Stanford said the spending would give students practical skills with direct economic benefits.
"These investments will enable New Zealand students to develop practical, job-ready skills, relevant to business and industry whilst at secondary school. This is good for innovation, entrepreneurship, reducing unemployment, and ultimately economic growth," the minister said.
Employers welcome trades focus
The Employers and Manufacturers Association (EMA) also singled out the trades focus as a highlight of the Budget, saying the reprioritised funding could help fill future skills gaps.
"The confirmed re-prioritisation of funding from the previous Fees Free scheme into trades training could go some way to filling future gaps in the trades, and enhance the work readiness of those leaving our schools and heading into skills and trades-oriented careers," EMA Head of Advocacy Alan McDonald said in a statement.
McDonald said the confirmation of an additional 10,000 Trades Academy places and around eight new trade-focused courses for secondary school students was a good use of the Fees Free funding, and he hoped the extra NZQA funding would speed up course approvals so the new courses could get under way sooner.
But the EMA cautioned that the broader economic outlook remained difficult.
"Unemployment also has a new peak at 5.5% in June this year, up another 0.1% (several thousand jobs) before dropping back," McDonald said.
He noted GDP growth for the year had been revised down to 1.2% from 1.7%, and said reaching the 3.2% growth forecast for 2028 would be challenging.
"A lot is going to have to stabilise to make some of these predictions a reality," he said.
