Apprenticeship Boost started in August 2020. Hipkins said it had helped increase the number of apprentices since the start of the pandemic by 55 per cent.
"We're also succeeding at getting more women into the trades."
Hipkins said businesses were calling for more skilled workers.
A $230 million investment as part of Budget 2022 would support another 24,000 apprentices getting Apprenticeship Boost support and 14,000 to keep being supported beyond August this year, he said.
There are already 17,000 employers involved in the programme and today's investment means new employers can join up, he said.
Under the scheme the first-year subsidy rate will lower from $1000 to $500 per month from August 5. The second-year subsidy rate will remain at $500 per month until the initiative ends in December 2023.
Hipkins said more work was to be done with apprenticeships, but good progress had been made.
He congratulated new apprentices and thanked employers for taking on new apprentices.
Hipkins said the building and construction sectors had suffered major skill shortages.
"Ultimately, we made the decision to extend the subsidy."
He said the Government was confident a strong number of new apprentices could be sustained.
"Never say never," Hipkins said when asked if the scheme might extend beyond 2023.
Included in today's announcement is more support for Mana in Mahi and Māori Trades Training, which has assisted over 4719 young people into work and training, Sepuloni said.
Budget 2022 would see funding for 1600 places on the scheme over the next two years so that it can continue to train people for available employment opportunities.
Funding is also being extended for Māori Trades Training and the Ministry of Social Development has established partnerships with 17 Māori entities delivering unique multi-year work-focused training, she said.
"The training programme is beginning to bear fruit and today's announcement provides certainty to our providers and the rangitahi who are benefiting from the scheme."
National Party social development and employment spokeswoman Louise Upston said she was sceptical of the announcements and the figures presented.
The Māori Trades and Training initiative allocated $50m in the 2020 Budget has currently just 57 participants, with plans for a total of 434 over the next two years.
It also comes as Newstalk ZB on Monday revealed the Ministry of Social Development had spent more than $800,000 for Zoom job expos attended by just 126 people.
"These announcements have no value unless people are actually supported into jobs yet repeatedly Labour's employment initiatives have failed to deliver for those stuck on benefit long-term," Upston said.
Meanwhile trades industry representatives are welcoming the continuation of Apprentice Boost but are disappointed at it being halved from $1000 to $500.
Motor Trade Association advocacy manager Greig Epps said it was widely supported by their members as it could take up to two years for an apprentice to start contributing fully to a business.
"Financial costs are the biggest obstacle to a business wanting to provide apprentice training.
"Apprenticeship Boost has enabled employers to retain and take on new apprentices without fear of financial hardship."
Deputy Prime Minister Grant Robertson is fronting today's post-Cabinet press conference with Prime Minister Jacinda Ardern isolating after her partner Clarke Gayford tested positive for Covid-19.
Robertson said New Zealand had a very strong economy, with low unemployment, and boosting apprenticeships was important at this point in the country's economic development.
He said it was important not to end up in a situation akin to that which befell New Zealand after the Global Financial Crisis.
Robertson said labour shortages followed, and only "skyrocketing immigration" could address that at the time.
The deputy prime minister said today's announcements were about ensuring youth could upskill.
Robertson said Act's alternative budget had various hare-brained and unrealistic proposals.
He said Act leader David Seymour had the luxury of making outlandish budget suggestions because Seymour was not in Government.
The Deputy PM said Act wanted to raise the retirement age and slash winter energy payments.
"The more important question her is what does Christopher Luxon take from what David Seymour said?"
The Prime Minister was isolating rather than using the exemption scheme for critical workers for two reasons: their daughter Neve and because she is not technically considered a critical worker.
While Ardern has had to cancel some events – including a visit to Hawkes' Bay – she could do most events and meetings remotely, including chairing Cabinet, delivering a pre-Budget speech to Business NZ on Wednesday and taking part in Question Time and speeches in Parliament.
The ministers are also likely to face questions over the Government's approach to crime amid a wave of youth ram raids, the climate change emissions budgets announced this morning, and the new BA.5 Covid-19 variant that was found in the country yesterday.
This morning the Act Party released its "alternative budget" where it proposed a range of cuts to public spending.
Shortly after, National Party deputy leader and finance spokeswoman Nicola Willis delivered a speech outlining her party's approach, focusing on the "squeezed middle".
The Budget is to be delivered May 19, with a focus on climate change and health.
