Skills and Employment Associate Minister Tariana Turia says trade training schemes are working to get young people into a wider range of jobs.
Unemployment for people aged between 20 - 24 has fallen, but Maori and Pacific young people are still more likely to be jobless than the general population.
The Government says the Budget next week will address the problem with a boost in trade training for young workers, with $43 million being allocated over four years.
Ms Turia said the number of training positions will go up from 600 to about 3000.
She said the scheme is helping young people's education and growing their confidence to the point where they sometimes move out into other kinds of work.
Fall in youth unemployment rates
Latest job figures reveal a sharp fall in unemployment rates for young people.
Statistics New Zealand says the number of 20 to 24 year olds out of work fell 4.1 percentage points to about 11% in the past year.
But the rate of unemployment for young Maori remains flat and has gone up for Pacific people.
Over all age groups, 38,000 more people have jobs than at the end of last year.