Young leader of a think tank advocates for vocational training over higher education in difficult employment circumstances among Gen Z individuals.
In the current job market, the trend towards skilled trades and entrepreneurship is gaining momentum among recent graduates. This shift is primarily driven by better job prospects in trades and significantly lower student loan debt.
Recent data indicates that while the overall unemployment rate for college graduates was 2.7% in mid-2025, it was notably higher at 4.8% for those aged 22 to 27. Furthermore, 41.3% of recent graduates were underemployed in roles not requiring a degree [1]. On the other hand, skilled trades face labor shortages, suggesting strong demand and better job security for trade workers and entrepreneurs [5].
A significant number of Gen Zers, including 42% of the generation, are currently working in or seeking skilled trade jobs. The motivation stems from the desire to avoid student debt and reduce risks from automation and AI [3].
Regarding student loan debt, college graduates typically accumulate much higher debt. The average student loan for a bachelor’s degree from a public university is around $32,000, with private colleges often higher. In contrast, trade school graduates often have significantly less debt—sometimes around $8,000 or less—and many graduate debt-free, especially through community colleges or scholarships [2]. This lighter debt burden reduces financial stress and allows for earlier financial stability compared to college grads burdened with loan repayments [2].
Public opinion also supports skilled trades. A recent poll revealed that 91% of Americans consider skilled trades as important as white-collar jobs, and a majority would advise high school graduates to choose vocational or trade school over a traditional college path [5]. Corporate America is urged to support this trend through hands-on programs, apprenticeships, and scholarships to address critical skilled labor shortages [5].
Terry Schilling, president of the American Principles Project, encourages Gen Zers to reconsider the traditional college route and explore skilled trades or entrepreneurship. Schilling highlights that there are significant shortages in various hands-on trades such as electrical, plumbing, and carpentry [4]. He points out that career paths like skilled trades and entrepreneurship can serve as viable alternatives to the traditional college route, which faces challenges like underemployment and heavy student loan burdens for many [4].
In conclusion, skilled trades and entrepreneurship offer stronger near-term job prospects, lower financial risk from debt, and growing societal and corporate support compared to the traditional college route, which faces challenges like underemployment and heavy student loan burdens for many recent graduates [1][2][3][5].
Sources:
[1] U.S. Bureau of Labor Statistics, June 2025. [2] College Board, Trends in Student Aid Report, 2024. [3] Gallup-Purdue Index, 2024. [4] Terry Schilling, remarks at the American Principles Project, June 2025. [5] Forbes, "The Skilled Trades Crisis: A Look at the Shortage of Skilled Labor in America", June 2025.
- To minimize debt and improve job security, an increasing number of recent graduates are pursuing skilled trades and entrepreneurship instead of traditional college paths.
- While student loan debt for college graduates often exceeds $32,000, trade school graduates often have significantly less, sometimes even graduating debt-free.
- In an attempt to address the critical skilled labor shortages, corporate America is urged to support hands-on programs, apprenticeships, and scholarships for those interested in skilled trades.
- Investing in personal-finance education, debt-management, and budgeting can help recent graduates make informed decisions about their financial future.
- Developing skills in a trade can serve as a stepping stone for entrepreneurship, offering a viable alternative to the traditional college route filled with challenges like underemployment and heavy student loan burdens.
- To achieve long-term career and financial success, it's essential to consider all opportunities in areas like education-and-self-development, career-development, and job-search, which include trade schools, skills-training programs, and entrepreneurship.
