
Degree-level apprenticeships - Market need
Understanding the market: Is there a demand or a need?
Use this self-assessment checklist to understand how best to determine whether there is a need or demand for DLAs in a given industry. Grounded in local and international best practices, it helps TEOs and employers work together to understand the opportunities that DLAs present.
Self-Assessment Checklist: Market demand
This self-assessment checklist is designed to support tertiary education organisations (TEOs), employers, and system leaders in New Zealand who are exploring whether there is a market for DLAs in a given industry.
Degree-level apprenticeships combine paid employment with academic study, typically in a three-way partnership between the learner, employer, and TEO. Before investing in programme development or rollout, it is essential to identify whether there is a genuine market for this model both from the perspective of industry needs and learner interest.
This checklist guides employers, education providers, and system leaders through the process of understanding market need across five key domains: industry skills demand, employer readiness, learner demand, system capacity, and international relevance. Each section includes diagnostic questions and brief explanations to inform practical decision-making.
Why this matters
The case for degree apprenticeships rests on their ability to meet real workforce demand. DLAs should begin with the needs of employers and are built around the roles that require higher-level skills. This theme explores whether DLA programmes are targeted to sectors with clear skills gaps, strong employment pipelines, and the potential to support in-work progression.
Why does this matter? Because effective DLAs depend on alignment between education and employment. If the qualification doesn’t meet a real market need or if the model can’t support learners already in work then you are more likely to see low uptake, poor retention, or limited impact. DLAs work best when they enable people to step up, not step away from the workforce.
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DLAs require employer buy-in. This theme focuses on whether employers are interested and capable of hosting apprentices, and what support they need to participate meaningfully.
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Employer consultation is a foundational step in determining whether a DLA programme is viable and valuable in a given industry. While data may suggest skills gaps or qualification shortfalls, employers provide on-the-ground insight into current workforce challenges such as difficulty recruiting work-ready graduates, limited internal upskilling pathways, or concerns about employee retention. For the ConCOVE pilots, we established implementation groups that brought together employers, industry associations and TEO staff.
These conversations help establish whether the DLA model aligns with their business goals and operational realities. In many sectors, employers are open to DLAs once they understand the potential for structured learning, tailored curriculum, and embedded mentorship. However, support is often conditional on having the right programme features such as flexibility, minimal administrative burden, and meaningful input into curriculum and assessment design.
International experience demonstrates that employer buy-in is essential for scale. In the UK, degree apprenticeships grew rapidly once large and small employers could reclaim training costs through the levy system and participate in co-designing standards. Similarly, in Germany’s dual study system, employers are integral to programme structure and delivery. In New Zealand, early DLA pilots have shown that employers value the opportunity to shape training pathways but need confidence in the provider’s delivery model, learner support, and the regulatory clarity around funding and assessment. Meaningful engagement should explore not just willingness to host apprentices, but readiness to act as a co-educator, including defining workplace learning outcomes and supporting assessments. Without this, DLAs risk being mismatched to industry needs or struggling to attract host organisations.
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Professional regulatory bodies play a critical role in determining whether DLAs are a credible and recognised pathway into a given profession. Many of these bodies set or approve the conditions under which qualifications are delivered, accredit academic programmes, and assess candidates for registration or licensure. Their support can lend legitimacy to a DLA and ensure that graduates are not only qualified in theory but also eligible to practise. Early engagement with these bodies is essential to understand their expectations, identify potential barriers, and explore opportunities for co-design or endorsement.
In some cases, regulatory bodies may have rules that restrict learners from being in paid employment while training, particularly in fields where independence, impartiality, or supervision requirements are tightly controlled such as architecture, healthcare, or law. These rules can conflict with the core DLA principle of “earn while you learn,” and may require negotiated solutions. Regulatory bodies may also be concerned with maintaining academic integrity, ensuring consistent assessment, or upholding the standard of public safety.
For DLAs to succeed in such environments, it is vital to involve these organisations in defining appropriate safeguards such as supervised practice scopes, independent capstone assessments, or phased progression models. In turn, professional bodies can help ensure that the DLA meets the standards required for graduate recognition and future registration. Their role is not just to approve or reject, but to help shape a delivery model that aligns with both educational innovation and professional accountability.
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Assessing employer readiness involves more than confirming interest in hosting apprentices—it requires understanding the depth of their commitment to shaping and supporting the programme. Expressions of interest, formal letters of commitment, or survey responses indicating intent to participate are useful indicators of immediate market viability. This includes interest in both recruiting new entrants (such as school leavers) and upskilling existing staff through the DLA model. For example, this template survey allows you to understand how employers would like to be involved and whether they would support apprenticeships.
Equally important is whether employers see themselves as active partners in the programme’s design and delivery. In strong DLA systems overseas, such as those in the UK and Germany, employers play a central role in co-developing curriculum, advising on skill standards, mentoring learners, and even participating in assessment. Willingness to engage at this level reflects a healthy demand ecosystem where industry is invested not just in access to talent, but in ensuring that graduates meet real-world performance expectations. Testing for both intent to host and readiness to collaborate is essential when evaluating whether a DLA programme can be sustained and scaled across an industry.
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Understanding employer capacity is essential to designing a viable DLA programme, particularly in sectors like construction where small to medium-sized enterprises (SMEs) dominate the landscape. Hosting a degree-level apprentice requires more than just offering a job; it involves mentorship, structured learning support, administrative coordination with the provider, and flexibility to release the apprentice for study. Many smaller employers lack dedicated HR teams or training infrastructure, and may see the additional workload as a barrier to participation unless offset by tangible supports. These might include wage subsidies, help with candidate recruitment, supervisor training, or reduced paperwork.
Employers may require financial support, guidance for in-house supervisors, and reduced administrative burden as conditions for participation. These practical realities must be factored into feasibility assessments. A DLA model that assumes all employers are equally resourced risks excluding smaller firms, which in many cases represent the majority of potential host organisations. Mapping these constraints early through surveys, interviews, or pilot engagement allows TEOs and system leaders to design enabling mechanisms (e.g. intermediary organisations, shared mentorship models, or group training schemes) that make DLA participation viable across a diverse employer base.
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Understanding whether DLAs address real gaps in an industry’s workforce is a foundational step in programme development. This theme looks at whether the roles, skills, and qualifications needed in the sector are aligned with what DLAs can offer.
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Degree-level apprenticeships are ideally suited to occupations that sit at the intersection of technical complexity and operational responsibility. These are roles where theoretical foundations must be applied daily in dynamic, real-world contexts. In the construction and infrastructure sector, this includes positions such as civil engineers, quantity surveyors, architectural technologists, construction managers, and infrastructure asset managers.
These roles are often regulated or carry significant safety and compliance obligations, meaning that employees are expected to both understand complex design, planning, and regulatory frameworks and operate effectively in fast-paced, project-based environments. The combination of academic knowledge (e.g. structural mechanics, procurement law, sustainability principles) with the ability to work on active job sites or lead teams makes them particularly well aligned with the apprenticeship model.
Moreover, these roles frequently face a “work readiness” gap: traditional graduates may have the theoretical foundation but lack experience in applying it under real-world constraints such as working with subcontractors, managing cost overruns, navigating health and safety incidents, or using proprietary construction technologies. DLAs are designed to close this gap by embedding learners in the work environment from the outset, allowing them to develop applied competencies and professional judgement over time. Identifying such roles, especially those with projected skill shortages or ageing workforces, provides a strong foundation for assessing DLA viability.
The presence of defined competency frameworks or professional registration standards can also help structure the academic and workplace learning requirements, ensuring graduates meet both industry expectations and regulatory thresholds.
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Reliable workforce data is essential for establishing a credible case for DLAs. Labour market intelligence from sources such as Immigration New Zealand, MBIE, Stats NZ, Workforce Development Councils/Industry Skills Boards, and industry associations can highlight where shortages exist and how they are evolving over time. For example, data from the 2018 Census shows that while construction managers are a growing occupational group, only around 20% hold qualifications at Level 5 or above despite the increasing complexity of the roles they perform. This signals both a shortage of qualified professionals and a potential misalignment between job demands and workforce capability, reinforcing the case for upskilling pathways that combine learning and work.
DLAs are uniquely positioned to respond to these shortages because they allow workers to gain higher qualifications without exiting the workforce. This is an important factor in sectors where the costs of people exiting the workforce to train has an outsized impact on industry-level productivity. If labour market trends indicate growing demand for degree-qualified professionals, and employers report difficulty finding work-ready graduates, it suggests a structural issue that traditional education pathways may not fully address.
DLAs can help build a pipeline of talent by attracting new entrants and supporting existing staff to step into higher-skilled roles. Moreover, where data show an ageing workforce, DLAs provide a mechanism for succession planning and knowledge transfer, ensuring that mid-career workers can advance into leadership roles while new apprentices are trained alongside them. Identifying these trends early enables TEOs and employers to design programs that are responsive, targeted, and aligned with the realities of workforce development.
TEOs and employers will need to think about what support they need and how best to arrange that support (see Is your organisation ready for DLAs?). For example, some TEOs here and overseas offer resources to employers and can sometimes step into the HR function, while some employers, particularly larger ones, will want to manage the process themselves to the greatest extent possible.
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Understanding underemployment and underqualification trends provides valuable insight into mismatches between education and employment in the sector. In many industries, it is not uncommon for degree-holding graduates to enter the workforce lacking the practical skills, contextual knowledge, or behavioural competencies required to perform confidently on site.
Employers may report that while these individuals possess technical understanding, they are not yet “site-ready,” leading to additional onboarding, training, or supervisory overhead. At the same time, many experienced workers such as forepersons, estimators, or technicians may have developed substantial competence through years of practice but lack formal qualifications to access more senior or regulated roles. This creates a form of skills underutilisation, where valuable talent is not being fully leveraged due to credential gaps.
DLAs offer a targeted solution to both sides of this equation by integrating academic learning with real-world performance. For degree-holders, a DLA model can embed practical experience throughout the learning journey, reducing the transition time from graduate to productive employee. For existing workers, DLAs offer a pathway to formal recognition and career progression without requiring them to leave the workforce.
In industries where both overqualification and underqualification are present, this dual approach helps align workforce capability with role demands, enabling better deployment of talent. Identifying where these mismatches exist through employer surveys, graduate outcomes data, or occupational analysis can help confirm whether a DLA model would fill a structural gap in the existing education and employment landscape.
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Understanding who might benefit from DLAs and whether they would enrol is essential. This theme considers learner motivations, barriers, and existing access routes. Understanding the information needs of prospective learners for what may be novel options is essential for TEOs and employers to craft appealing and accessible training solutions.
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Degree-level apprenticeships are particularly attractive to learners who need to balance education with paid employment whether due to financial constraints, family responsibilities, or a preference for applied learning over traditional academic pathways. This includes school leavers who might otherwise choose immediate employment over full-time study, as well as adults already working in the industry who are seeking to advance their careers without stepping away from the workforce. In industries like construction and infrastructure, many prospective learners value hands-on experience and are motivated by clear job outcomes rather than abstract academic credentials.
International experience shows that competition for degree-level apprenticeship places can be intense with some employers selecting less than one per cent of all applicants, and pilots in Australia reported almost 200 high-quality applicants for fewer than 20 places. While DLAs offer a compelling alternative: the ability to gain a degree, earn a salary, and become embedded in their chosen field from day one, but prospective apprentices will have many questions such as how the workload will be balanced between work and study, whether they will receive adequate support from both their employer and education provider, and (where applicable) if professional bodies will recognise the qualification for registration or further progression.
They may also want to understand how the model compares to traditional degree routes in terms of career prospects, flexibility, and financial cost. For older learners or those returning to study, concerns about academic readiness and digital literacy may arise, while school leavers may be unsure how to navigate dual application processes or secure a host employer. Addressing these questions through clear, coordinated information and outreach ideally co-branded by employers and TEOs is crucial to building learner confidence and enabling informed participation. When done well, these pathways can unlock access for those previously excluded from higher education, offering a structured, supported, and financially viable route to degree-level qualification.
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DLAs offer a significant opportunity to address longstanding equity gaps in higher education by providing a more accessible, practical, and financially sustainable pathway to a degree. For many women, Māori, Pacific Peoples, disabled learners, and older adults, traditional full-time study presents barriers whether due to cost, family and cultural responsibilities, unwelcoming academic settings, or limited flexibility in delivery. In contrast, DLAs enable learners to earn while they learn, remain embedded in their communities and workplaces, and see a clear connection between study and real-world career outcomes. This can be especially powerful for learners who may not see themselves reflected in universities or who have previously disengaged from formal education. By valuing practical skills and enabling structured entry into professional roles, DLAs can create new access points for those typically underrepresented in degree programmes.
Currently, degree graduates are drawn disproportionately from higher socio-economic backgrounds reinforcing patterns of inequitable access to higher education. DLAs have the potential to shift this dynamic by creating new, community-embedded pathways that do not rely solely on school-based academic achievement or traditional entry routes. If these groups are already active in the workforce particularly in trades, technical roles, or support positions but are absent from higher-level qualifications, DLAs can help bridge the gap between experience and advancement.
TEOs will want to understand which learner groups are represented in the relevant industry or profession, what their existing skill levels are and whether these groups have needs that are distinct from other learners. Employers can also provide insight into how the actual and potential capability of their staff maps to the opportunity that DLAs represent and what systems are in place to identify, support and nominate high-potential staff from underrepresented backgrounds.
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One of the most important indicators of DLA viability is the presence of identifiable learner cohorts who are qualified, motivated, and ready to benefit from earn-while-you-learn opportunities. In many industries, a substantial pool of learners already exists in the form of workers who hold sub-degree qualifications (e.g. Level 5 or 6 diplomas) but lack a pathway to a bachelor’s degree. These individuals may be underemployed or unable to access senior or regulated roles without further study yet returning to full-time education is often impractical due to financial or family obligations.
In some cases, parallel or precursor models already exist such as traditional sub-degree apprenticeships, internships, co-op degrees, or work-integrated diplomas. TEOs and employers must consider: what additional value does the DLA bring? Is it full-time employment during study, guaranteed sponsorship, structured mentorship, or a pathway to professional registration? If the DLA does not offer a distinct value proposition, it may struggle to attract learners already enrolled in or considering similar options. Equally, in industries where no such applied or work-based degrees exist, DLAs may fill a critical market gap.
Planning
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Getting ready
Find out if you are ready for degree-level apprenticeships
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Admissions
Check if your admissions processes are DLA ready
Guidelines
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Guide for employers
An introduction to degree-level apprenticeships for employers
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Guide for apprentices
An introduction to degree-level apprenticeships for learners
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Guide for TEOs
An introduction to degree-level apprenticeships for tertiary education organisations