Gen Z drives a resurgence in blue-collar work

• A majority (78%) of Americans say they've noticed a recent growing interest from young adults to pursue trade careers.
• Nearly a quarter (23%) of Americans who don't currently do trade work, say they plan to get into the profession, which is the case for 50% of Gen Z and 42% of millennials.
• With the emergence of AI, 66% of Americans believe trade professionals have more job security than corporate professionals - a belief commonly held by both trade workers (71%) and corporate workers (70%).

Generation Z has reshaped various societal norms, which entails redefining what's in and what's out. The latest workforce trend being embraced by today's most influential generation is blue-collar career paths. As the promise of a four-year degree falls short, and the cost to receive a college degree continues to climb, young Americans are making blue-collar jobs cool again.

According to a new study conducted online by The Harris Poll on behalf of Intuit Credit Karma among 2,091 U.S. adults ages 18 and older, nearly half of Americans (49%) believe that American society views trade jobs more negatively than corporate jobs - a belief most pronounced among older generations (61% of baby boomers ages 60-78 and 54% of Gen X ages 44-59 versus 39% of millennials ages 28-43 and 36% of Gen Z ages 18-27). While the stigma associated with trade work - also known as blue-collar - is present, perceptions are starting to shift, and young Americans are leading the charge.

A majority (78%) of Americans say they've noticed a recent growing interest from young adults to pursue trade careers, possibly supported by the fact that roughly one-in-five Americans (21%) view trade jobs more positively than corporate jobs, especially the case for millennials (31%) and Gen Z (23%). In fact, 15% of Americans have considered pursuing vocational training or trade school, and that jumps to 27% of Gen Zers and 16% of those who currently work a corporate job.

Nearly a third (32%) of employed Americans currently work in the trades, including 38% of Gen Z, 34% of millennials, 30% of Gen X and 28% of Baby Boomers. And nearly a quarter (23%) of Americans who don't currently do trade work say they plan to get into the profession in the future, which jumps to 50% of Gen Z and 42% of millennials.

What's so great about trade work?

The top factor that influenced trade workers to pursue a trade career is work-life balance (43%), followed by job security and job availability (both 42%). On the note of job security, the advent of AI, specifically generative AI (GenAI), may have more people on alert. With the emergence of AI, 66% of Americans believe trade professionals have more job security than corporate professionals - a belief commonly held by both trade workers (71%) and corporate ones (70%).

Social media might also play a role in the resurgence of interest in trade jobs. One in 10 (10%) trade workers say that seeing skilled-trade workers on social media influenced their decision to pursue a trade career, and another one in 10 say seeing stories on social media from people with corporate jobs who are struggling to make ends meet also impacted their decision.

The promise of a 4-year degree is broken

It's difficult to imagine a resurgence in blue-collar work without the acknowledgement of the fraught nature of the higher education system in the United States, which has many people wondering if the expense is worth it. Nearly half of Americans (45%) don't see the value in a 4-year college degree, and that remains true for more than half of Gen Z (52%). In a similar vein, a majority of Americans (64%) do not think taking on student loan debt is worth the return on investment of a college education, and more than three-quarters of Americans (77%) think the argument that you need to go to college to have a successful career is outdated.

While more than 3 in 5 Americans (61%) are under the impression that in most cases, getting a college degree will result in a well-paying job, 22% of those who went to a 4-year college are not making as much money as they thought they would, having attended one. The latter is felt among nearly a quarter (23%) of corporate workers.

The crippling nature of student loan debt is likely why more than half (54%) of those who currently have student loans, or have had them in the past, regret their decision to take on debt for a degree. Luckily, only 12% of Americans who attend a 4-year college, or attended one in the past, are dissatisfied with their decision to do so, yet, that increases to roughly one-in-five (21%) Gen Zers.

Stigmas drive unawareness

Over time, four-year universities have been idolized as the true path to success, especially among highly educated parents who expect their kids to follow in their footsteps. This could be why trade school and vocational training programs have an awareness problem in the U.S. Of those who attended or are currently attending a 4-year college, 19% were not aware there were alternative education paths they could have taken for school/career, and that jumps to 33% of Gen Z and 29% of millennials. And, roughly one in 11 (9%) say they were forced by their parents to attend a 4-year college, which is the case for 15% of Gen Z and 12% of millennials. Interestingly, 16% of trade workers also say they were forced by their parents to attend a 4-year college, which could be a hard pill for them to swallow if they had to take on debt to do so.

Entrepreneurship flourishes in trades

Stigmas aside, most Americans are aware of the entrepreneurial opportunities that exist for blue-collar workers. Roughly three quarters (76%) of Americans believe trade professionals have a better chance at becoming a business owner/entrepreneur than corporate professionals - and they're not wrong. Trade workers (20%) are almost twice as likely as corporate workers (11%) to be self-employed. And the pay is not half bad either - 30% of trade workers make $100k+ in annual gross income.

One is not superior to the other

We're seeing a split mindset when it comes to how Americans view a four-year college education and the overall return on investment (ROI). Exactly half of Americans (50%) agree there is a higher ROI (i.e. career earnings compared to education cost) with a 4-year college than with a trade school, while another half disagree with this claim.

"Lately, there's been a lot of warranted attention placed on the exorbitant cost associated with getting a four-year college degree, and healthy debate as to whether the return on investment is worth the expense," said Courtney Alev, consumer financial advocate at Credit Karma. "The traditional four-year college path isn't one-size-fits-all, and vocational and trade schools may offer an affordable path to well-paying, skilled trade jobs. It's refreshing to see young adults taking notice and interest in these lines of work, especially considering how challenging it's been for new grads to find white collar jobs. Whatever decisions consumers make about their education and career paths, they can rest easy knowing plenty of corporate and trade professionals alike are happy in their jobs. Our study found that a majority of trade workers (81%) and corporate workers (74%) say that if they were to re-enter the job market, they would still choose to pursue the same career path."

Methodology

This survey was conducted online within the United States by The Harris Poll on behalf of Credit Karma from August 1-5, 2024 among 2,091 U.S. adults ages 18 and older. The sampling precision of Harris online polls is measured by using a Bayesian credible interval. For this study, the sample data is accurate to within +/- 2.5 percentage points using a 95% confidence level. For complete survey methodology, including weighting variables and subgroup sample sizes, please contact [email protected].

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