The Government will provide a financial incentive for students looking to get into trades, offering a $2000 scholarship to the top vocational student in every high school across the country.
The money will be available to the winning students by the end of this year.
Prime Minister Jacinda Ardern said although university was great for further education, the Government would like to see more people in trades.
"For too long trades and on-the-job skills training has played second fiddle in how we see success at school and later career choices."
She said getting more people into jobs, such as construction, plumbing, software engineering and agriculture, was of high importance given the huge skills shortages that exist across many industry sectors.