Paid placements in New Zealand: Here’s everything you need to know about this initiative

An advocacy group in New Zealand is calling on the government to reinstate paid placements to address workforce shortages across the country. Paid Placements Aotearoa, the group leading this initiative, is set to deliver a petition on the issue to Parliament on May 28, urging the government to take immediate action.

Bex Howells, Campaign Lead of Paid Placements Aotearoa, stated in a press release, "If New Zealand wants to grow its workforce, it's going to have to introduce paid training too." 

Howells pointed to successful models in other countries, particularly highlighting Australia’s upcoming initiative to implement paid placements for teachers, nurses, midwives, and social workers starting in July 2025. 

"Scotland has done this with extraordinary success. Over the last decade, they have grown their nursing staff by 94.7% and midwives by 201%," Howells added, reported Human Resources Director. 

The call for paid placements is gaining traction, especially following the Education Review Office's recent report recommending the introduction of a "placement allowance" to eliminate financial barriers for student teachers. This recommendation is part of broader efforts to address the financial hardships faced by students in essential professions during their training periods.

The Nurses Organisation has also voiced its support for paid placements, citing the issue of "placement poverty" as a significant barrier to growing the workforce. They argue that without financial support during training, many students are deterred from entering essential professions such as nursing, exacerbating existing workforce shortages.

Historical context and current challenges

Paid training was once standard practice in many professions in New Zealand before the shift towards university-based training. According to Paid Placements Aotearoa, the removal of paid placements has left many students struggling to afford their education while also needing to cover living expenses. 

"Ultimately, students deserve to live with dignity in training and New Zealanders deserve better access to services. There's an abundance of evidence that paid training works and we must join this global call to action," said Howells.

The call for reinstating paid placements comes at a critical time. Other countries are actively seeking to attract essential workers from New Zealand, increasing the risk of a "brain drain." This situation is particularly concerning as New Zealand faces growing workforce shortages across several essential sectors, including healthcare and education.

Comparative international initiatives

Australia's initiative to introduce paid placements for essential workers by 2025 serves as a compelling model for New Zealand. By offering financial support to students during their training, Australia aims to remove barriers to entry for essential professions and ensure a steady influx of qualified workers. 

Scotland’s success further underscores the potential benefits of such programs. Over the past decade, Scotland has significantly increased its number of nursing staff and midwives through paid placements, demonstrating the effectiveness of this approach in growing the workforce.

The advocacy for paid placements in New Zealand is not only about financial support but also about recognizing the value and dignity of students in essential professions. By providing paid training opportunities, New Zealand can better compete globally and retain its talent within the country.

Wider implications and the way forward

The petition by Paid Placements Aotearoa is expected to garner significant attention, especially amid reports of rising job applications in New Zealand due to public sector cuts. The issue is further compounded by recent proposals, such as the Accident Compensation Corporation (ACC) planning to cut 390 roles, which highlight the broader challenges within the workforce.

Reinstating paid placements could also align with other governmental initiatives aimed at supporting job seekers. For instance, the recent mandate for work seminars for Jobseeker beneficiaries demonstrates the government’s recognition of the need for proactive measures to support employment. Introducing paid placements could complement these efforts by providing practical, financial, and educational support to those entering essential professions.

The call to bring back paid placements in New Zealand is a significant step towards addressing the country's workforce shortages. By following the successful examples set by countries like Australia and Scotland, New Zealand can create a more supportive environment for students in essential professions. This move is not only crucial for growing the workforce but also for ensuring that students can train with dignity and that the country can retain its talent.

The petition by Paid Placements Aotearoa highlights an urgent need for government action to reinstate paid placements, providing financial relief to students and addressing the workforce shortages in critical sectors. As New Zealand grapples with these challenges, reinstating paid placements could be a pivotal step in securing a sustainable and robust future for its essential services.