Hipkins said the $230 million investment would provide support for 24,000 new apprentices as well as continued support for 14,000 established ones whose employers are receiving the subsidy until August this year.
Macdonald said the subsidy extension would help AGC's apprenticeship programmes as it assured companies that they wouldn't lose money bringing in an apprentice to train.
"It gives confidence to the industry and the sector and the people wanting to take on an apprenticeship because it's not going to cost them," he said.
However, the amount paid to employers for first-year apprentices will be cut in half.
Employers will now be paid a subsidy rate of $500 per month for the first year of an apprenticeship, rather than the $1000 per month they were previously receiving.
Second-year subsidy rates will remain the same at $500 per month.
The number of people doing an apprenticeship had increased by 55 per cent since the introduction of the subsidy in 2020, the Government said.
The Building & Construction Industry Training Organisation (BCITO) reported their apprentices had increased in Whanganui from 90 in 2020 to 230 at the moment, a 155 per cent increase.