Gen Z's Shift to Practical Careers and Vocational Training

Gen Z is increasingly choosing trade schools over college, driven by the promise of high-paying jobs in trades like welding, plumbing, and carpentry. According to the National Student Clearinghouse, enrollment in vocational programs surged in 2023 as young people seek debt-free career paths. This trend highlights a significant shift in workforce preferences and challenges long-held beliefs about the path to prosperity.

TV personality Whoopi Goldberg noted that Gen Z has a bad reputation for being work-shy, but INC. shows they actually prefer avoiding desk jobs. Desks are seen as restrictive, impeding their productivity and collaboration. Growing up with video games, Netflix, and smartphones, Gen Z is accustomed to working anywhere and tuning out distractions.

Fortune highlights that Gen Z has come to realize that traditional college degrees often lead to financial burdens, primarily due to education debt and the prospect of low-paying jobs. Data from payroll services provider ADP shows that the median pay for new construction hires was US$48,089 last year, compared to US$39,520 for new hires in professional services.

“Parents and kids alike are starting to get the message that trade school is an amazing opportunity with just a fraction of the debt—if any at all—and a clear path to something that looks a lot like prosperity,” said Mike Rowe, CEO,  MikeRoweWorks Foundation, to Fox Business. This sentiment underscores a growing preference among young people for practical, hands-on training that leads directly to lucrative careers, rather than the traditional route through college.

Enrollment in vocational-focused community colleges saw substantial growth in 2023, marking its highest level since tracking began by the National Student Clearinghouse in 2018. Specifically, there was a 16% rise in overall enrollment, with a notable 23% increase in students studying construction trades and a 7% uptick in Heating, Ventilation, and Air Conditioning (HVAC) and vehicle maintenance and repair programs compared to the previous year.

According to DRIFT, carpentry is gaining popularity internationally due to the demand for woodworking. It serves homeowners and businesses by producing essential components such as roof and window frames for buildings, as well as interior furnishings.

In Mexico, according to Statista, the unemployment rate among university graduates was 8.7% in Mining and Extraction in 2023, followed by 8.4% in Ecology and Environmental Science, and 7.7% in Industrial Engineering. Meanwhile, the Mexican construction industry saw a significant increase of 12% in new job postings in q!24 compared to the previous quarter. GlobalData's analysis of construction company job postings revealed that Honeywell International accounted for the largest share with 487 job postings. 

Despite this trend, a college degree can still lead to high earnings. The career site Ladders found that most top-paid positions on its platform require an advanced degree. The New York Fed's study of labor market outcomes revealed that computer engineering graduates often top the salary charts, while those in medicine and accountancy also see lucrative returns, though these fields typically require a bachelor’s degree.