Business. Scoop » New Report Calls For Urgent Action To Strengthen NZ’s Digital Skills Pipeline
Press Release – Tech New ZealandTech New Zealand says advanced digital skills are now critical to New Zealands productivity, competitiveness and economic resilience. New Zealand’s digital skills challenge has. . .
Press Release – Tech New ZealandTech New Zealand says advanced digital skills are now critical to New Zealands productivity, competitiveness and economic resilience. New Zealand’s digital skills challenge has become a structural issue that requires coordinated national action, according to a new report from Tech New Zealand. Digital Skills Aotearoa: Digital Skills in the Age of AIfinds that while New Zealand’s technology sector continues to grow strongly, the domestic pipeline of advanced digital talent is under increasing pressure. Declining participation in key school subjects, limited entry-level opportunities, lower ICT migration and rapidly growing demand for AI, cybersecurity, cloud and software capability are all contributing to the challenge. The report draws on data and insights from government, industry and education providers to provide an updated picture of New Zealand’s digital skills landscape and the practical actions needed to strengthen it. New Zealand’s technology sector is one of the country’s strongest growth engines. It comprises more than 24,000 firms, contributes approximately $24 billion (around eight percent of GDP) and the top 200 technology exporters generated nearly $18 billion in revenue in 2024. Those exporters have grown at around eight percent annually over the past five years, approximately five times faster than the wider economy. However, Tech New Zealand Chief Executive Graeme Muller says New Zealand cannot assume that growth will continue without investment in the people and capability needed to sustain it. “Technology is one of New Zealand’s clearest pathways to higher productivity, export growth and global competitiveness. But we cannot take that growth for granted,” says Graeme Muller, CEO of Tech New Zealand. “Demand for advanced digital skills remains strong, particularly in AI, cybersecurity, cloud infrastructure and software development. At the same time, the foundations of our future workforce are under pressure. Fewer students are taking the science, technology and maths subjects that underpin digital careers, and too many graduates are struggling to get the early work experience they need. ”Digital capability is now needed across the whole economy, not only within technology companies. The report notes that 132,336 people were employed in ICT professions across New Zealand in the 2023 Census. More than half of surveyed organisations expect recruitment for digital roles to increase over the next 12 months, while AI has emerged as the most sought-after future skill across both public and private sectors. However, the supply pipeline is weakening. Participation in NCEA technology subjects declined by around two percent annually between 2015 and 2024. Over the same period, the proportion of students taking science, technology and maths subjects fell from the high 80 percent range to below 75 percent. International recruitment is also playing a smaller role, with only 729 visas approved for ICT jobs in 2024, down 67 percent on the previous year. “This is no longer just a leaky pipeline. It is a structural challenge,” says Graeme. “New Zealand needs stronger foundations, clearer pathways and better coordination between industry, government and education. In the age of AI, the countries that thrive will be those that can build, secure, govern and apply digital systems themselves. We should be aiming to create technology, not simply consume it. ”The report also highlights an emerging ‘AI paradox’. AI tools can help people complete some digital tasks faster, but they can also increase code complexity, technical debt and security risks when used without sufficient expertise. This makes experienced practitioners (those who can validate outputs, manage risk and govern AI systems) even more important. “AI does not remove the need for advanced digital skills. It makes them even more important,” says Graeme. “New Zealand needs people who understand the technology deeply enough to use it safely, productively and responsibly: from software engineers and AI specialists to cybersecurity experts, cloud professionals, systems architects and leaders who can govern data, risk and ethics. ”However, there are some encouraging signs. Domestic IT degree enrolments are growing, female participation in IT degree-level qualifications is improving and employers support work-integrated learning. Eighty-two percent of surveyed organisations support qualifications that include work-integrated learning, work-based learning or digital apprenticeships. Ninety-one percent agree that internships should be paid. However, opportunities remain limited. In 2024, Summer of Tech facilitated just 132 internship placements, while around seven times as many students applied for placements. “We are at risk of creating an experience chasm. Employers need experienced talent, but graduates need opportunities to become experienced. Paid internships, digital apprenticeships and stronger work-integrated learning models can help bridge that gap. ”The report recommends action across education, government and industry, including:Improving digital inclusion and engagement with digital skills through primary and secondary education. Supporting teacher training and resources that make digital learning both accessible and engaging. Introducing digital apprenticeships, including pathways in general digital and AI fluency as well as advanced digital skills. Establishing an IT degree apprenticeship. Including digital fluency and IT degree apprenticeships in funded apprenticeship support schemes. Building a coalition of large digital employers to help shape courses and commit to apprenticeship opportunities. Introducing a lifelong learning policy, supported by a small annual grant for regular upskilling. The report also argues that digital inclusion should be treated as economic infrastructure, not solely as a social equity issue. “Digital inclusion is the starting point for the advanced digital skills pipeline. If young people do not build confidence with digital tools early, they are less likely to see science, technology and digital careers as accessible. That matters for productivity, equity and New Zealand’s ability to build a resilient, homegrown workforce. ”Tech New Zealand says the report should serve as a catalyst for collective action. “The opportunity is significant. New Zealand has a fast-growing tech sector, strong exporters and increasing demand for digital capability across every part of the economy,” says Graeme. “But we need to act deliberately. Growing advanced digital skills is not simply about filling technology jobs. It is about lifting productivity, supporting innovation, strengthening national resilience and ensuring New Zealanders can help shape the digital future. ”ReadDigital Skills Aotearoa: Digital Skills in the Age of AI:https://technewzealand. org. nz/reports/new-digital-skills-aotearoa-report-calls-for-coordinated-action/Content Sourced fromscoop. co. nzOriginal url