The Nurses Union says more funding is needed to ensure students find a placement at the end of their studies, which will provide vital mentoring and job opportunities.
However, the Ministry of Health disagree and say the amount of nurses in New Zealand is keeping up with population growth and an ageing workforce.
Third year nursing student and full time mum Ruth Cameron says she worries a job won’t be available once she completes her degree.
"It's always present in the background that you may not get a job and you just can't be guaranteed that. It is worrying and it is concerning," she says.
The current system matches graduates with DHB's around the country.
These placements provide important training and mentoring opportunities, but not everyone is offered a spot.
"The nurses are desperate to get in and they need that training and mentoring, but it’s not being funded enough," says the Nurses Union.
According to the Union, hundreds of graduates are missing out, which may lead to staff shortages later on.
But the Ministry of Health disputes this, and says their research shows only around 40 students who graduated in 2015 are still searching for work.
The Ministry says as it works hard to develop new graduate programmes, it is managing to reduce the risk of an ageing workforce.
Despite this, Health Minister David Clark says he has asked the Ministry to look into the issue and find ways to ensure graduates get jobs.