A Ministry of Education report shows more tertiary students than ever are working during term-time, with those in low-intensity jobs outperforming non-working peers on completion rates — but Māori and Pacific students are more likely to be in high-intensity work.
More New Zealand tertiary students are working during term-time than at any point in recent history, and the patterns reveal both a growing financial pressure on students and meaningful differences in outcomes across groups, according to a Ministry of Education report covered by RNZ.
The proportion of students in paid work during the main teaching months rose from around half before 2021 to closer to 60 percent in recent years, the report found. The increase was most pronounced in 2022 and has remained relatively high, even as the post-pandemic labour market has softened.
Work intensity matters for results
The data on academic outcomes challenges a simple assumption that more work automatically means worse results. Students in low-intensity work — defined as earning less than $1465 per month — recorded a course completion rate of 88 percent in 2024. That compared with roughly 83 percent for both non-working students and those in high-intensity roles earning above $2628 per month.
Students in very high-intensity work had the lowest completion rate of all, at 80 percent.
The pattern was not uniform across student groups. Part-time students who did not work had lower completion rates than those who did, suggesting that for some students, moderate work may reflect a range of characteristics — including motivation and structure — that also support academic performance.
Victoria University of Wellington Students Association president Aidan Donoghue said the correlation between light work and better outcomes might partly reflect the determination of students who needed to work in order to stay enrolled.
"There's definitely a trade-off between working more and having more money to live on, versus working less and spending that time on studying," he told RNZ. "It's always something that as a student you must come to terms with."
Financial pressure driving the shift
Donoghue said many students faced significant financial pressure that made term-time work a necessity rather than a choice. "Your StudyLink living costs or allowance hasn't kept up with spikes in what you're paying, so you definitely need to work."
He noted that catered halls at universities cost more per week than the StudyLink living cost set by the government, making external support or earnings essential for many students. Retail and hospitality roles were commonly cited as accessible options because of their flexibility around lecture schedules.
The report noted that part-time students were consistently more likely to be in paid work than full-time students, and were also more likely to be in high-intensity roles, according to RNZ.
An equity gap in work intensity
The report highlighted substantial differences in exposure to high-intensity work across demographic groups. Māori and Pacific Peoples students were more likely than other groups to be in high-intensity work while studying, and showed greater reductions in completion outcomes at higher work intensities — particularly Pacific students.
"European and Asian students maintain comparatively high completion rates across all intensity levels, with limited sensitivity to higher-intensity work," the report said. "In contrast, Māori and Pacific Peoples students have lower completion rates overall and show greater reductions in completion outcomes at higher levels of work intensity."
The findings suggest that rising student employment during term-time is not equally distributed, and that those facing the greatest financial pressure may also be carrying the highest academic risk.
This article is for general information only and is not personalised financial advice. Seek advice from a licensed financial adviser (registered on the FSPR) for guidance specific to your situation.