Josephine Nesbit
April 8, 2024 at 2:09 PM
The younger demographic of Generation Z is opting for lucrative traditional trades over pursuing a traditional four-year university education.
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With the escalating expenses associated with higher education, the appeal of skilled trades has significantly increased among the nation’s newest workforce. According to the Education Data Initiative, the cost of obtaining a bachelor’s degree has more than doubled in the 21st century. When factoring in student loan interest and potential income loss, the total cost of acquiring a bachelor’s degree can exceed $500,000.
Concurrently, enrollment in vocational training programs has witnessed a notable upsurge, while the overall enrollment in community colleges and traditional four-year institutions has experienced a decline. The National Student Clearinghouse Research Center reported a 16% boost in enrollment at two-year institutions focusing on vocational programs over the past year. During the same period, there was a 23% rise in students pursuing construction trades, and a 7% increase in programs related to HVAC and vehicle maintenance and repair.
In 2023, the median salary for newly hired construction workers saw a 5.1% increase to \(48,089, . In contrast, fresh recruits in professional services, such as accountants or IT maintenance personnel, earned \)39,520 annually, marking a 2.7% rise from 2022, according to data from ADP, a payroll services provider. Notably, this marks the fourth consecutive year where the median annual income for new construction employees has exceeded that of new hires in professional services and information sectors, as highlighted by ADP.
The demand for trade apprenticeships is also witnessing an upward trend. A survey conducted by software company Jobber among high school and college-aged individuals last year revealed that 75% expressed interest in vocational schools that offer paid on-the-job training opportunities. Furthermore, the emergence of Generative AI has influenced the perspectives of younger generations regarding their career paths and job stability. A majority of survey participants indicated that they believe blue-collar occupations provide greater job security compared to white-collar roles due to the proliferation of AI.
On platforms like TikTok, a young electrical lineman shared that he earns $200,000 annually, owns multiple properties, and benefits from double-time pay, overtime compensation, retirement plans, and union perks, . While trades can be financially rewarding, they also demand considerable dedication. This lineman maintains a busy schedule throughout the year, often working over 60 hours per week for 16 hours each day.
“Similar to , Generation Z faces significant challenges,” noted attorney Michael Lux, the creator of The Student Loan Sherpa. “While a college degree remains a prerequisite for many professions, the continuous surge in tuition fees outpacing wage growth, coupled with years of inflation and escalating rental costs, presents a daunting financial landscape.”
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