Gen Z enters the commercial sector as college disillusionment grows

Enter trade jobs. A majority of Americans (78%) have seen a growing interest in business careers among young adults, according to a Harris Poll of more than 2,000 US adults for Intuit Credit Karma.

A large cohort of Americans (32%) are trade workers, and a growing number are looking to join the ranks. While about a quarter of Americans plan to join the retail sector, that number rises to 50% when we talk about Generation Z and millennials. They are attracted by the prospect of work-life balance, job security, and job availability.

And it seems that more than one in four Zer generations have considered attending vocational training or trade school. It is surely no coincidence that many of these younger generations also faced the highest cost of college, entered a job market hit by a severe recession, and witnessed a pandemic that exposed the pitfalls of white collar work.

“People have really prioritized college education as a path to the middle class and a path to a cushy desk job,” said Lisa Countryman-Quiro, CEO of the nonprofit Jewish Vocational Service. Pr. “In the last 10 to 15 years, we see a trend among young people dropping out of university. Just crushing college debt becomes a barrier in itself.”

The waning allure of white-collar gigs

Indeed, the younger generations are taking note of the market they are being pushed into; After all, the white-collar workforce has been going through a tough time lately. Junior employees have seen the contract between employers and employees break, or at least fall apart, while office workers navigate rounds of layoffs and threats of artificial intelligence from upper management. Job seekers have found that the hiring process is often longer and more difficult than in the past. Even the highly sought-after tech jobs of 2010 have fallen in trend as Gen Z prioritizes consistency and stability over high-paying but stressful jobs.

It all means that 21% of Americans view trade jobs more favorably than corporate jobs, with that number rising to 31% among millennials and 23% for Gen Zers.

Meanwhile, blue-collar workers have seen some gains recently. Often backed by strong unions, which are less common in white-collar office work, the sector has held on to fading pensions while demanding historic contracts that include well-paid wages and guarantees of better conditions. 66% of respondents reported that they believe trade employees have more job security than white-collar workers, a sentiment shared equally by those in both professions.

The workforce faces stereotypes about manufacturing jobs and the stigma associated with them. Nearly half (49%) of Americans believe that society views trade jobs more negatively than corporate jobs, a belief supported more by older generations. Although Gen Z appears to be pushing back against this notion, having seen white-collar work fall short of its promise for other generations. Even if these jobs were once a path to success for some, as they were decades ago, many younger workers are finding that they have to hire or quit to really climb the corporate ladder.

When it comes to college, America is divided when it comes to the higher return on investment for said pursuits or a trade school, according to Credit Karma’s survey. More than half (52%) of Gen Zers don’t see the value in a four-year degree, compared to 45% of general respondents. Adding the weight of loans to the equation, many (64%) feel the cost is simply not worth it.

Even so, 61% of employees believe a college degree leads to a high-paying gig. One thing seems clear, the pressure pipe is not the only one holding the weight. A majority of Americans (77%) believe that the idea that you need to go to college to have a successful career is outdated.

And as the white-collar workforce ages, America faces a potential shortfall of up to 2.5 million workers by 2020, McKinsey projects. But the current state of the white-collar workforce and college pipeline seems to advertise commercial work on its own.

“It’s not a crisis story like it was a few years ago,” said Michael Krupnicki, president of the American Welding Society. The Wall Street Journal in April. “The pendulum swing happened hard and fast.