Gen Z Opts for Trade Jobs Amid Rising College Costs and AI Fears

With a rise in education costs and a growing fear of AI’s potential to replace white-collar careers, Gen Zers are opting to wear toolbelts instead of being chained to desks and spending years paying back student loans. Ever since the pandemic, the number of young adults choosing trade jobs has grown, a trend that might be partly responsible for college enrollment numbers dropping over the last few years. Is this a smart move for Gen Z, or are they being too cautious?

Gen Z Says No to College Debt

“More Gen Z college graduates are turning to trade careers and for good reason,” said Stacie Haller, Resume Builder’s chief career adviser. “Many are concerned about AI replacing traditional white-collar roles, while trade jobs offer hands-on work that’s difficult to automate.”

Many Gen Zers who have skipped the pursuit of a bachelor’s degree find blue-collar jobs provide more “financial independence without the burden of student loans.” Of those without a diploma, more than half “want to earn an income sooner and avoid debt.” Forty percent believe trade jobs would provide “better long-term security.” Nearly a third preferred “hands-on work.” Others said they thought they could “earn more without a degree” and had seen “others succeed in blue-collar jobs.”

This is a big reversal from previous decades when a college degree “typically offered far better pay than blue-collar work,” explained the New York Post. “Trade jobs offer a smart and rewarding path for many,” said Haller, “especially those who prefer hands-on work and practical learning over traditional classroom settings.” Entry into the workforce can be quicker, too, “with less risk of automation or outsourcing.” People who choose these vocations frequently start in apprenticeships and can grow their careers “through specialization, supervisory roles, or even business ownership,” explained Haller. Apprentices also have the additional benefit of being paid while they learn a new trade, as opposed to paying an institution to gain knowledge for a job not guaranteed after graduation.

The Price of Admission

Just for one student attending an in-state college for four years, the average price tag is nearly $30,000 for one academic year. After factoring in books, supplies, and daily living expenses, “[t]he average cost of college in the United States is $38,270 per student per year.” But when also considering “student loan interest and loss of income, investing in a bachelor’s degree can ultimately cost in excess of $500,000,” explained the Education Data Initiative.

The Pragmatic Generation

Over the previous five years, a paradox seems prevalent in higher education. On the one hand, “you have an enrollment crisis building,” said Hafeez Lakhani, founder and president of Lakhani Coaching in New York. On the other hand, “you have record application volume at the most selective schools,” meaning colleges that are not “big brand” may have “a real problem” to face.

On the plus side, for those who still prefer to attend a university, several elite schools and Ivy League institutions have been ramping up their financial aid programs, even offering full tuition to the “most promising” applicants, “which is working to encourage students to apply to the high-sticker-priced schools,” observed Fast Company, a business magazine. Of course, options like that are far from guaranteed, and students still need stellar grades to get accepted.

It seems college is slipping further and further out of reach for most nowadays. The hefty price tag alone is enough to turn numerous people away from higher ed, so it isn’t too surprising that so many Gen Zers  are opting for alternative career paths. And in today’s uncertain economy, with the number of colleges dwindling (as many as 80 scheduled to close by 2029)  and the difficulty finding work post-graduation, perhaps this isn’t a trend but a pragmatic approach to a more prosperous and stable future for Generation Z.

1. Ever since the pandemic, the number of young adults choosing trade jobs has grown, while college enrollment numbers have been dropping over the last few years.
2. Many Gen Zers who have not pursued a bachelor’s degree have found blue-collar jobs provide financial independence without costly student loans.
3. As many as 80 colleges and universities are forecast to close by 2029.