The initiative will engage all young people in school or some other form of education, training or structured learning until they are 18.
Education Minister Chris Carter said about 14,000 pupils left school each year without a level 1 NCEA qualification and without going on to any further study or training.
Forty percent left without NCEA level 2.
While present high employment levels were offering a lot of unskilled jobs, New Zealand needed to invest in a higher skills base to sustain economic growth, improve living standards and help lift productivity, he said.
"Schools Plus is about building on the strengths of our current education system to transform secondary schooling and its links to other sectors, and give our young people the best possible chance to succeed.''
The ministry is now calling for feedback on implementation of the initiative from secondary schools, tertiary educators, training providers, industry training organisations, employers, non-governmental organisations, parents and communities.
National Party education spokeswoman Anne Tolley said the policy would only encourage truancy, increase classroom disruption as teenagers rebelled against being forced to stay, and denied pupils the opportunity to make their way in the world at their own pace.
Otago Secondary Principals Association president and Otago Boys High School rector Clive Rennie disagreed.
He said he was personally in favour of the initiative and was keen to contribute any information he could to make it succeed.
"We've sometimes had pupils in school who would be better placed somewhere else, like courses or industry training organisations.
"The new initiative is saying schools no longer have to just simply find solutions for disaffected students. They will now have a wide umbrella which will certainly enhance skills of kids and encourage them to stay in education. Students will get something out of it and be of value to the economic community".
"We will have a much better co-ordinated effort to keep up with what pupils need in terms of educational and vocational courses,'' he said.
Kaikorai Valley College principal Philip Craigie also welcomed the initiative. He said the school had a 15-year-old last year who began working at a local joinery factory after school each day.
Staff at the factory were impressed with his skills and devotion, and offered him an apprenticeship.
Because he had become disaffected at school, the college applied for an early exemption certificate - special permission from the ministry to leave school before he was 16.
"Under the Schools Plus initiative, he would be able to do that with less red tape in the way. I think it's a good initiative".
Workshops will be held in April and May this year and a summary of feedback will be posted on the Schools Plus website from June.
