Recent findings indicate that Generation Z is significantly shifting from conventional university paths to trade jobs and apprenticeships.
A May 2025 survey by Resume Builder, which included responses from 1,434 Gen Z individuals, explored how economic challenges, rising tuition costs, and fears about AI are influencing career choices.
The results revealed that 42% of Gen Z members are engaged in blue-collar or skilled trades, with 37% holding bachelor’s degrees or pursuing jobs in these fields.
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Interestingly, men from Gen Z are more inclined towards blue-collar careers than women. About 46% of degree-holding men are either working in or pursuing trade jobs, compared to 27% of women.
Real-world concerns
Many respondents cited practical concerns as the motivation behind their career choices.
“A growing number of Gen Z college graduates are opting for more professional roles,” one participant noted.
“There’s a prevalent fear that AI could take over traditional white-collar jobs. In contrast, trade jobs tend to be less vulnerable to automation. Additionally, many graduates are realizing that their degrees may not guarantee careers in their fields, prompting a shift towards more practical and sought-after options.”
Specifically, 19% reported difficulty finding jobs in their fields post-education, while 16% felt they weren’t earning sufficient salaries, and another 16% believed their degrees wouldn’t lead to the careers they anticipated.
Flexibility and independence also featured prominently in their reasons for choosing a trade. Around 45% expressed a desire for this, while 32% preferred hands-on work over desk jobs, and 30% felt trade careers offer a more optimistic long-term outlook.
Concerns about AI
Looking ahead, about 25% of those surveyed think that blue-collar jobs are unlikely to be automated by AI.
This comes in light of previous comments from Dario Amodei, CEO of Anthropic, who warned that AI might eliminate a substantial number of entry-level white-collar positions, potentially raising unemployment rates to between 10-20% in the next few years.
In a discussion titled “White Collar Blood Bath,” Amodei called for more transparency about the imminent challenges in the job market.
Yet, returning to the Resume Builder Survey, 20% of Gen Z respondents see their peers thriving in this job transition, and 11% believe tariffs will generate more blue-collar employment.
Avoiding debt while earning faster
Financial considerations also play a significant role. Around 29% feel that trade careers are in high demand, while 27% are convinced they can earn more in these fields.
Looking at the experiences of older generations and recent job losses in large firms, Gen Z seems to view blue-collar careers as a way to earn quickly (60%), sidestep student debt (40%), and achieve long-term job security (38%).
The average cost of attending a university in the U.S. has more than doubled in the past 24 years, now exceeding $38,270 per year, covering tuition, books, and living expenses, according to the Education Data Initiative.
This research aligns with findings from the World Economic Forum regarding the gig economy, which highlights a rise in part-time and side jobs as living costs continue to climb. A recent bank survey indicated that over a third of American side hustlers feel dependent on additional income to meet their goals, with expectations for 26 million others to join this trend by 2027.
The current shift towards trades also responds to a growing shortage of skilled workers. As experienced tradespeople retire, the U.S. faces a serious lack of plumbers, electricians, and other essential technicians.
As Haller pointed out, “With many tradespeople retiring, there’s a significant labor gap. Unlike traditional degrees, trade certifications are often quicker and more affordable, enabling workers to enter the job market swiftly without incurring long-term debt.”
Changing perspectives on education
Among those pursuing or engaged in blue-collar work, 15% have never attended university, 8% dropped out, while 19% have completed four-year degrees, and others have attended community colleges.
Of the graduates taking blue-collar roles, 29% hold bachelor’s degrees, while 18% have associate degrees.
“Trade jobs can offer a sensible and fulfilling route for many, especially for those who thrive in hands-on environments rather than traditional classrooms. These positions often provide solid job security without the burden of student debt and are less susceptible to automation,” Haller observed.
“Many of these jobs start through apprenticeships, enabling career advancement into specialized, supervisory, or even ownership roles, making this path a viable option for long-term stability.”
For policymakers, this trend highlights the necessity to bolster vocational education and apprenticeship initiatives, while also emphasizing the need to address gender disparities in the trades considering the underrepresentation of women.
In summary, Gen Z’s shift towards blue-collar work reflects a practical response to economic challenges, technological disruptions, and escalating higher education costs.
Whether contemplating your own career shift or advising younger individuals and families, consider utilizing job boards to explore positions that come with competitive salaries and benefits.
