The 2025 Times Higher Education (THE) World University Rankings, released yesterday, showed that not a single university in New Zealand had risen up in the ranks and three of eight had in fact dropped.
The University of Otago-Ōtākou Whakaihu Waka fell from band 301-350 to band 351-400 — its lowest position since joining the rankings.
Meanwhile, the University of Auckland dropped two places to fall out of the top 150 and Lincoln University fell from the 401-500 band to 501-600.
Tertiary Education Union (TEU) Otago branch president Craig Marshall said the results were concerning but "hardly a surprise".
"If we look at the rankings overall, it's disappointing, of course, to see that Otago has fallen.
"Given the financial difficulties that it's had and the effects on staff, it's perhaps not surprising.
"I think almost all the universities have been affected by financial difficulties and it's hard not to see when you reduce the number of staff, that can't have an effect directly and indirectly on the performance of the universities."
It was "particularly problematic" for attracting overseas students, which was becoming increasingly important to do.
There were many universities that overseas students could choose to study at, and while rankings alone did not govern this decision, they could be a factor.
There was "no doubt" the result was indicative of an underinvestment by the New Zealand government in tertiary education funding, which had been a trend for quite some time.
"You get what you pay for."
University of Otago-Ōtākou Whakaihu Waka vice-chancellor Grant Robertson said their slide down the rankings was "disappointing" but occurred in the context of a university sector that had been under pressure.
"This is a little bit like judging the medals at the last Olympics, not the current one, in that much of the material is based on surveys that go back as far as October 2022 and into 2023.
"If you think back to that period of time, it was now where the university's financial challenges began to emerge.
"It was off the back of Covid, and so that's the context I think that's important to bear in mind."
The University of Otago was still the second highest-ranked university in New Zealand, and the reputation of its courses and pastoral care meant it had a "solid reputation" in the international community.
"I do think international students are attracted by a range of factors and I think we are still an attractive destination."
There was a "strong underpinning" to Otago's reputation that went beyond any individual rankings and its staff remained "world class", Mr Robertson said.
Tertiary Education and Skills Minister Penny Simmonds said the results were "worrying" but reflected a number of universities in Asia making "significant improvements" and rising up the ranking scale — a trend that had been flagged for some years now.
"It is one of a number of rankings that are done, so any one ranking doesn't define the university."
She did not think there was a direct link between the rankings and the levels of tertiary education funding.
The rankings tended to be very closely linked to universities’ research, and so she had instructed the University Advisory Group to look at whether the performance-based research fund in particular was fit for purpose.
Universities New Zealand chief executive Chris Whelan said the latest rankings highlighted more could be done to keep up with our international counterparts.
"The work currently under way with the University Advisory Group needs to consider the long-term health of the sector for us to remain internationally competitive."
