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As members of Generation Z graduate from high school and transition into adulthood, a notable trend is emerging: many choose to pursue paths outside of traditional college education.
This shift can be largely attributed to the rising costs associated with obtaining a bachelor’s degree. Data indicates that between 2011 and 2023, the annual expenses to attend a four-year in-state public college surged by approximately 30%, while private, nonprofit four-year institutions saw an increase of about 42% during the same period. These numbers were gathered from various educational data sources.
“There are currently about 2 million fewer students enrolled in four-year universities compared to 2011,” says Nich Tremper, a senior economist at payroll and benefits platform Gusto.
In lieu of attending college, many young adults are finding promising careers in skilled trades such as construction, plumbing, electrical work, and automotive repair. As of the first quarter of 2024, individuals from Generation Z constituted 18% of the workforce. Notably, those aged 18 to 25 accounted for nearly 25% of all new hires in sectors centered on skilled trades.
Below, we explore how members of Generation Z are carving out their niches in blue-collar professions and what potential challenges could arise due to recent tariffs enacted by the Trump administration.
‘I’m not going to stop my business and pay for college’
Morgan Bradbury, who is 21 years old, discovered her passion for welding in high school and was immediately captivated by the craft. Post-graduation, she enrolled in a nine-month welding certification program at the Universal Technical Institute, which cost around $21,000.
Bradbury secured a job with BAE Systems, a military and information security firm, even before completing her certification, earning a starting salary of approximately $57,000 annually. She now works as a second-class welder on U.S. Navy ships in Norfolk, Virginia.
Meanwhile, Chase Gallagher, 24, has been involved in landscaping since he was a teenager. He officially registered his company, CMG Landscaping, in 2015. By the age of 18, he was managing a client roster of up to 82. “I evaluated my circumstances and decided that halting my business to pursue college wasn’t the right choice,” Gallagher shares.
In 2024, his landscaping business generated $1,085,000 in revenue, with Gallagher personally earning nearly $500,000 from both his salary and ownership stake.
According to Gusto, the average starting wage for skilled trades workers is roughly $23 per hour. Electricians report a median annual income of around $62,350, while plumbers earn about $62,970, and construction laborers receive a median of $46,050, as reported by the Bureau of Labor Statistics.
Though vocational paths offer considerable earnings, college graduates continue to have an edge, with a median income of $80,000 as of 2024, according to the Federal Reserve Bank of New York. Moreover, college graduates generally experience a median return on investment of 12.5% from their educational expenses.
‘They’re adding to the dynamism of the economy’
The recent tariffs imposed by President Donald Trump may present challenges for Gen Z individuals pursuing careers in blue-collar industries, such as manufacturing and construction, according to Tremper. The administration has implemented a 10% tariff affecting all countries, along with higher tariffs on specific imports from Mexico and Canada, including a significant tariff on Canadian soft lumber used in construction.
“It’s crucial to recognize that tariffs on soft lumber could negatively impact job opportunities and skill development in these fields,” Tremper notes. “Higher home construction costs could lower demand, which may ultimately limit job availability in construction trades.”
However, there are positive indicators as well. Tremper highlights that job stability in the trades has been more robust compared to many traditional white-collar roles. Recent Bureau of Labor Statistics data shows lower termination rates in industries like construction and trade compared to sectors populated by white-collar workers.
With Baby Boomers gradually retiring, new opportunities may arise for younger workers. Tremper points out that as older generations exit the workforce, Generation Z will be positioned to build their ventures, contributing to economic vitality and enhancing their financial prospects.
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