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News » More Gen Z Americans ditch college for skilled trades: report

More Gen Z Americans ditch college for skilled trades: report

National Skills Passport

NEW JERSEY, UNITED STATES — A growing number of Generation Z workers are bypassing traditional four-year college degrees in favor of skilled trades, citing soaring tuition costs and a desire for faster, more direct paths to high-paying careers. 

According to the Education Data Initiative, the annual cost of attending a four-year, in-state public college jumped by about 30% between 2011 and 2023, while private, nonprofit colleges saw a 42% increase over the same period.

“There are about 2 million fewer students in a traditional four-year university now than in 2011,” said Nich Tremper, senior economist at payroll and benefits platform Gusto. 

Instead, Gen Z is increasingly entering fields like construction, plumbing, electrical work, and automotive repair. In the first quarter of 2024, Gen Z accounted for 18% of the workforce, but nearly 25% of new hires in skilled trades were aged 18 to 25.

Real stories: Building careers without college

Morgan Bradbury, 21, discovered welding in high school and was “mesmerized by the fact that I could have the ability to build things with my own hands.” After a nine-month certification course costing $21,000, she landed a job at BAE Systems with a starting salary of $57,000, before even finishing her program. She now works as a second-class welder on U.S. Navy ships in Norfolk, Virginia.

Chase Gallagher, 24, started landscaping as a teenager and registered his own company at 15. “I just kind of looked at the numbers and said, ‘Listen, I’m not going to go stop my business and pay for college,’” he said. In 2024, his landscaping business brought in over $1 million in sales, netting him just under $500,000 in salary and owner share.

Job security and economic outlook

The skilled trades offer not only competitive pay-electricians and plumbers earn median salaries above $62,000, while construction workers make around $46,000-but also greater job security compared to many white-collar professions, which have faced layoffs and automation

“In recent months, job security has been stronger in the trades than in many traditional white collar jobs,” Tremper noted, citing lower termination rates in sectors like construction and manufacturing.

However, new tariffs introduced by the Trump administration could present challenges. “Increased costs on home building can lead to lower demand, which will limit the amount of construction trades jobs available,” Tremper warned. 

Still, with Baby Boomers retiring, Gen Z is poised to fill a growing gap. “Gen Z workers are going to be able to move into a space where they’re building their own businesses, adding to the dynamism of the economy and really providing a lot more opportunity for themselves financially,” Tremper said.

More U.S. workers regret college degree

More than a third of American workers now believe their college degree was a waste of time or money, according to a new survey by Indeed

The sentiment is especially strong among younger generations. A majority of Generation Z workers (51%) and 41% of millennials said their degrees weren’t relevant to their current jobs, compared to 30% of Gen X and just 20% of baby boomers. 

Additionally, the gig economy is largely driven by Gen Z workers as they also embrace the concept of ‘micro-retirement.’ 

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