Te Pūkenga in the black as student numbers grow

Tuesday, 25 February 2025

Antoinette Ranapia, 49, decided to study automotive engineering this year - one of a growing cohort of students studying at polytechs.

Mega polytechnic Te Pūkenga has seen continued growth in student numbers this year and is expecting to be in financial surplus when final figures land for 2024.

It comes as the Government confirmed its plans to dismantle Te Pūkenga – New Zealand Institute of Skills and Technology last December.

Tertiary Education Minister Penny Simmonds expected 10 polytechs to be able to stand alone, while new legislation for the disestablishment meant others could be merged or shut down.

Te Pūkenga consists of 16 Institutes of Technology and Polytechnics (ITPs) and nine Industry Training Organisations (ITOs).

But in spite of ongoing uncertainty, as of this month, overall enrolment numbers were up 6% compared to the same time last year, Te Pūkenga chief executive Gus Gilmore said.

As of February 14, Te Pūkenga has 43,000 students – a 2244 increase on the same time last year – but that number is expected to change through the year. In 2023, the most recent annual figures available, the total final number of students was 236,819.

Based on provisional numbers, Te Pūkenga would be making a surplus for 2024 which was “a significant turnaround” given its 2023 annual report showed an operating deficit of $37.9 million and $93m in 2022.

Big year looms for polytechs with massive cuts expected

“Stripping out costs from non-student-facing areas of our business has really paid dividends.” Its head office had gone from 200 staff in 2023 to about 60.

For 2025, almost all business divisions had either experienced growth in enrolment or had remained the same. International student revenue had risen from $94m in 2023 to $140m in 2024 and an 18% increase in numbers this year.

Manukau Institute of Technology (MIT) and Unitec executive director Peseta Sam Lotu-Iiga said they were “bulging at the seams” and had to hire more staff to meet the demand.

Enrolments had grown by 8.9%. Nursing was up 17% and there had been strong growth in automotive engineering.

Manukau Institute of Technology (MIT) and Unitec executive director Peseta Sam Lotu-Iiga says they are bulging at the seams.

“We’re confident that we can continue to provide the services that not just industry want, but that our students are demanding,” Lotu-Iiga said.

Overall, nursing enrolments were up 8% across the motu, electrical and engineering up 18%, business management up 5% and hairdressing and beauty up 19% on last year.

Open Polytechnic had grown 13% while Whitireia and WelTec in Wellington were up 10% on last year – in particular, international student growth was 55%.

The Government is expected to announce the number and location of standalone polytechs as it continues work on Te Pūkenga’s disestablishment, confirmed last year. (File photo)

It was “fantastic” to see Eastern Institute of Technology Hawke's Bay also grow 9%, two years on from the flooding, Gilmore said.

Otago Polytechnic remained the same.

Gilmore said the growth was reflective of the slow economy.

“When our economy is doing strong, our work-based learning divisions are doing well because everyone’s training in work,” Gilmore said.

“When the economy is soft, people are retraining, or they’re doing training, either online or on campuses.”

At 49 years old, Antoinette Ranapia decided to enrol in automotive engineering at MIT this year.

She wanted to learn how to fix cars to cut costs and help her family. The flexible learning worked well for her to be able to still take care of her four children and grandchild at home.

Manukau Institute of Technology (MIT) and Unitec has experienced an 8.9% increase in student numbers - 10.5% in their automotive engineering course.

Meanwhile, Sione Moala, 22, went back to the course after having started it five years ago.

He wanted to open his own shop or use the course as a stepping stone to become a diesel mechanic. More “hands on” learning suited him.

Moala said it would be concerning if the disestablishment meant reducing course options, particularity as he wanted to do more to up-skill himself.

The better the financial position of business divisions by the middle of the year, when the minister was expected to announce which polytechnics would be established, and in what form, the better, Gilmore said.

Work at regional ITPs continued to focus on financial viability.

Simmonds said the better financial situation was a result of clear expectations to stop centralised activities and review each institution’s finances.

“The decision to disestablish Te Pūkenga was the right one … a continuation of the centralisation agenda would have resulted in a much worse financial outcome,” she said.

“I recognise that the months ahead will be a challenging time. There are still some difficult decisions that need to be made to address the issues that are impacting the sustainability of our vocational education and training system.”

Cabinet would decide on the number and location of standalone ITPs, the provision of work-based learning, and changes to the funding system to support the redesigned system in the first half of the year.

Simmonds expected the first standalone polytechs to be in place on January 1, 2026.

*CORRECTION: An earlier version of this story incorrectly reported Te Pūkenga’s student numbers. As of February 14, Te Pūkenga has 43,000 students – a 2244 increase on the same time last year – but that number is expected to change through the year. In 2023, the most recent annual figures available, the total final number of students was 236,819. (Amended Wednesday February 26, 2025, 9.25am)