Taking on an Apprentice: The Real Cost and the Real Return

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Construction apprentice numbers are down over 30% from 2022. For a business that can carry the investment, that is an opportunity rather than a warning.

Construction apprentice numbers have fallen more than 30 percent from their 2022 peak, and new entrants to workplace-based training across all industries dropped 16 percent in 2025 to 16,780.

For a trade business with capacity to train, a shrinking pipeline is an argument for taking someone on rather than against it — because in four years everyone else will be competing for the qualified people who were never trained.

Be honest about year one

An apprentice is not commercially productive for a meaningful period, and they consume supervisor time that would otherwise be billable. Both are real costs.

Businesses that do not acknowledge this in the plan end up in one of two places: resenting the apprentice for not paying their way, or under-supervising them to protect utilisation. The second is worse, because it produces a poorly trained tradesperson and a safety risk.

Build the expected non-chargeable supervision time into your pricing. If your charge-out rates assume full productivity from everyone on site, an apprentice makes every job less profitable and you will conclude training does not work.

What the investment actually returns

  • A tradesperson shaped to how you work, in four years, at a point when qualified people are scarce.
  • Retention. People trained by a business tend to stay longer than people recruited into it.
  • Capacity to grow. A business that cannot staff additional work cannot take additional work.
  • Supervisor development. Teaching forces your experienced people to articulate what they know, which improves their own practice.

The system changed on 1 January 2026

A new independent, industry-led model for work-based learning took effect at the start of 2026, with vocational education providers managing apprenticeship and traineeship programmes under guidance from newly established Industry Skills Boards.

If your last apprentice was signed up under the previous arrangements, confirm who administers training in your trade now and what the current process is.

Note also that Apprenticeship Boost applications fell from 309 in 2021 to 55 in 2025 following changes to that scheme — so check what financial support is currently available rather than assuming what applied previously.

Supervision is a legal obligation, not just good practice

In construction this is specific. Restricted building work must be carried out or supervised by a Licensed Building Practitioner licensed in the relevant class, and supervision has a meaning: sufficient control and direction to ensure the work is performed competently and complies with the consent.

Nominal supervision — an LBP whose name is on the paperwork but who is rarely present — is a disciplinary matter, and complaints on exactly that basis are among the more common before the Building Practitioners Board.

An apprentice can lawfully perform restricted building work under supervision. Spreading one LBP thinly across several concurrent sites is where businesses get into difficulty.

Health and safety weighs heaviest on new workers

Inexperienced workers are over-represented in injury statistics because they are unfamiliar with the work and less likely to recognise a hazard or refuse an unsafe instruction.

What that requires:

  • Genuine induction covering the actual hazards of your work, not a generic form.
  • Task-specific training before the task, verified rather than assumed.
  • Close supervision on anything with serious harm potential — height, machinery, electricity.
  • Making it genuinely acceptable for an apprentice to say they do not know how to do something, which requires the crew to back it the first time it happens.

Falls and vehicles are where the sector’s serious harm concentrates.

The employment side

  • Apprentices are employees with full entitlements — minimum wage, holiday pay, sick leave, KiwiSaver.
  • A trial period requires the agreement signed before the first day of work, with genuine opportunity to take advice. This is the requirement most often failed.
  • Training cost repayment clauses must be reasonable and agreed in writing, and any wage deduction needs specific written consent.
  • Employer KiwiSaver contributions are 3.5 percent, rising to 4 percent on 1 April 2028.

Choosing well

Hire for attitude and reliability, and train the skill. Turning up on time, communicating, and being willing to ask questions are harder to teach than technique.

Check references properly and speak to a previous employer rather than a friend. In a small team one poor hire affects quality, other staff, your own workload and your reputation.

Education Counts publishes workplace-based learner statistics under an open licence, MBIE publishes LBP requirements at lbp.govt.nz, and Employment New Zealand publishes free employment agreement templates.

Figures: Education Counts workplace-based learner data, 2025. General information only, not legal advice.

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