Labour's policy to turn dole money into apprenticeships if elected, is being applauded by the The Industry Training Federation.

Under the 'Dole for Apprenticeships' scheme, employers will be paid around $9000, the equivalent of the dole, to take on an otherwise unemployed apprentice under the age of 24.

ITF Chief Executive Josh Williams said this scheme puts the money to better use.

"If you're going to be paying that benefit anyway, why would you not give that to the employer and make sure that people are on the chance of a productive pathway through the apprenticeship system?"

Mr Williams said the funding will encourage employers to give young people a chance, as new workers are usually less productive in the first year. 

He said the current government has done quite a lot for apprentices, but he welcomes Labour's announcement. 

"We think that's a better level of support for employers...just a better use of that same dollar that's currently going into the Benefit system."

Williams said we need to boost apprenticeships, because the industry needs an extra 5000 construction workers, especially in Christchurch and Auckland.