Trades or degrees for higher pay? Here's the data that shows you

New Zealand’s government is shifting funds from its 'fees-free' university scheme to trades training, arguing the initiative failed to meet goals and prioritizing economic growth. Prime Minister Christopher Luxon stated the scheme had been 'quite a failure,' while only 6% of young people enter apprenticeships compared to a third pursuing degrees. Data from the Tertiary Education Commission reveals licensed tradespeople, such as electricians and plumbers, earn more immediately after training than most degree-holders. Electricians start at a median $84,000 annually and plumbers at $79,000, though carpenters and mechanics see earnings plateau after five years. Degree-holders, including fields like arts, commerce, and health, begin at $62,000 but rise to $95,000 after nine years. High-earning exceptions include medical graduates ($116,000) and engineering/IT graduates, whose incomes surge after five years. Trades also offer financial advantages during study, as apprentices earn $24–$39 per hour while training, unlike university students who often incur tens of thousands in debt. Completion rates for trade qualifications (56–57%) are slightly lower than degrees (60%), though licensed trades face supply constraints, sustaining higher long-term wages. Economists note trade earnings may underrepresent self-employed workers, whose incomes are harder to track. University of Otago’s Murat Ungor warns correlation between education and earnings doesn’t prove causation, as degree-holders may benefit from higher ability, family support, or professional networks. The shift reflects broader debates on aligning education with labor market demands and economic priorities.